Dollar Attempts A Recovery

• 7 Aug 2020

USD/JPY

The USD/JPY pair has found less and less momentum in recent trading, with price action narrowing to a series of small-bodied candles. Neither buyers nor sellers are dominating price direction. A trading range has been established between the 104.67 and 106.05 price levels where price action will likely oscillate in the near term. Momentum indicators remain in bearish territory. 

 

 

 

 

 

EUR/USD

The Eurodollar has struggled to move beyond the 1.184 resistance line, despite several attempts by buyers. Selling pressure remains with each attempted break being contained. Momentum indicators suggest that bullish momentum may be waning as both have flattened; with RSI in overbought territory.

 

 

 

 

 

GBP/USD

The GBP/USD pair is struggling to sustain the bullish momentum that drove the break and as such, the pair has barely moved beyond the 1.311 resistance line. A reversal seems likely especially as sellers have returned in recent trading. Momentum indicators suggest the pair is overbought.

 

 

 

 

 

USD/CHF

The USD/CHF pair continues to bounce along the 0.908 support level. Buyers have returned in early trading yet previous attempts to drive price action higher have fizzled out. Momentum indicators reflect a bullish bias with moderate upward trajectories. 

 

 

 

 

 

USD/CAD

The USD/CAD pair is oscillating within a bearish trend, bullish moves tend to be short-lived as the descending trendline acts as a resistance line. Price action is lifting away from the 1.322 support level. Momentum indicators remain in bearish territory, with upward trajectories. 

 

 

 

 

 

GOLD

Gold has enjoyed 12 bullish trading sessions in the last 13 days, however, the break of the 2042. 57 resistance area may cause a slowdown in this bullish run. Given current fundamentals, we may not expect a reversal but perhaps a slowdown in the pace of the rally. Momentum indicators are flattening in overbought territory.

 

 

 

 

 

OIL

WTI cannot seem to move out of the $40 per barrel range. In the absence of major fundamental news to disrupt supply or demand, the commodity will likely continue to bounce along this gap fill line. Momentum indicators remain in bullish territory.