Gold Plummets In Mid-Week Trading

• 12 Aug 2020

USD/JPY

USD/JPY buyers seem to have gain momentum with a break of the 106.05 hurdle. The break also means the return to a previous trading range. The ceiling of the trading range is the 107.94 price level which also represents the next price target. Momentum indicators have sharp upward trajectories. 

 

 

 

 

 

EUR/USD

The Eurodollar is coming under pressure as a break of another support line (at the 1.175 price level) takes the pair back towards a previous range. Heavy selling pressure which formed the break has waned, however, as bearish momentum appears to have slowed. Momentum indicators have established bearish trajectories.

 

 

 

 

 

GBP/USD

The GBP/USD reversal appears to be underway albeit at a very moderate pace. A number of doji candles after the break indicates a lack of conviction. The next target is the 1.288 support level. Overall, there is an established longer-term uptrend with an ascending trendline acting as a support level. Momentum indicators are returning from overbought conditions.

 

 

 

 

 

USD/CHF

The USD/CHF pair has found support in line with a USD revival. Although selling activity is present, buyers appear to have conviction to drive price action towards the 0.925 resistance area, which represents a recent low. A return to this price area also represents a price recovery. Momentum indicators reflect a bullish bias with sharp upward trajectories. 

 

 

 

 

 

USD/CAD

The USD/CAD pair will continue to oscillate within the bearish move as the descending trendline acts as a resistance line for the pair. A break of the 1.322 price level is yet to materialise as horizontal price action indicates lack of conviction from sellers. Momentum indicators remain in bearish territory. 

 

 

 

 

 

GOLD

Gold sellers returned with gusto in yesterday’s trading. The pullback has taken the metal back towards the ascending trendline which has acted as a support level on previous occasions. We may anticipate a bullish rebound given current economic conditions. Momentum indicators indicators reflect the sharp change in price direction, with a break of the 70 overbought line. 

 

 

 

 

 

OIL

WTI sellers are containing price action in a narrow range, yet there appears at least some appetite from buyers to continue the moderate upward trajectory.  The $40 per barrel range will likely remain intact. Momentum indicators have flattened in bullish territory.