Pound Strengthens In Mid-Week Trading

• 19 Aug 2020

USD/JPY

USD/JPY sellers demonstrated strong conviction in driving the break of the 106.05 support level in yesterday’s trading session. Momentum has stalled in the early Asian trading session. The next support level is at the 104.67 price line. Momentum indicators remain in bearish territory.  

 

 

 

 

 

EUR/USD

Eurodollar buyers are still dominating price action despite a moderate rise in selling pressure. A break of the 1.175-1.184 trading range is significant as the pair reaches new, recent highs and also adds weight to the established uptrend. Momentum indicators remain in bullish territory with RSI testing the 70 resistance line.

 

 

 

 

 

GBP/USD

GBP/USD buyers have returned with conviction and a break of both the 1.311 and 1.320 resistance levels has materialized. Whether the break can be sustained will be revealed in the next few trading sessions. Momentum indicators remain in bullish territory, with RSI moving beyond overbought conditions.

 

 

 

 

 

USD/CHF

The USD/CHF pair has moved beyond the 0.908 support level as confirmation of bearish sentiment for the pair. The move is driven more by dollar weakness as the Franc receives some uplift from Euro gains. Fundamental factors are likely to play a significant role for this pair. Momentum indicators remain in bearish territory. 

 

 

 

 

 

USD/CAD

The USD/CAD pair has moved below the 1.322 support level, which has been an obstacle previously. The break serves as confirmation of the downtrend. Given the low volatility, the question remains: how much further will price action drop? Momentum indicators remain in bearish territory with RSI testing the 30 oversold line. 

 

 

 

 

 

GOLD

Gold buyers have begun to dominate price action yet sellers remain active in the metal. A rebound from the ascending trendline is taking price action back towards the 2065 resistance area; which remains the ceiling of the current trading range. Momentum indicators have moderate upward trajectories. 

 

 

 

 

 

OIL

WTI buyers are pulling price action away from the 41.69 resistance line albeit at a very slow pace. Price is likely to remain within the $40 per barrel range as economic uncertainty and low demand negatively impact the commodity. Momentum indicators are flat in bullish territory.