British Pound Finds Support

• 1 Oct 2020

USD/JPY

The USD/JPY pair continues to trade horizontally with small-bodied candles indicating a lack of conviction from both buyers and sellers. The current trading range between the 104.67 and 106.05 price levels will likely remain intact for the near-term. Momentum indicators have flattened in neutral/bearish territory.  

 

 

 

 

 

EUR/USD

The Eurodollar is struggling to return to the previous trading range between the 1.172 and 1.192 price levels. An upside break has not materialised despite several tests in the last few trading sessions. Bullish momentum remains subdued. Momentum indicators have upward trajectories. 

 

 

 

 

 

GBP/USD

GBP/USD buyers are beginning to dominate price action with the ascending trendline in sight. A resistance level exists at the 1.311 price area which represents a previous support area. If price action can move beyond this key resistance area, the longer-term bullish bias will resume. Momentum indicators have begun upward trajectories.  

 

 

 

 

 

USD/CHF

The USD/CHF rally has suffered a pullback as sellers returned. The pullback only went as far as the 0.918 support level, with a doji candle representing a halt in the bearish move. The direction of the pair will be determined by sentiment on the USD. Momentum indicators have flattened in bullish territory. 

 

 

 

 

 

USD/CAD

The USD/CAD pair is now moving away from the 1.343 resistance area as buyers lacked the appetite to drive the break. Sellers are now dominating and the pair is now heading back towards the 1.322 support area. The longer-term downtrend may resume. Momentum indicators remain in bullish territory. 

 

 

 

 

 

GOLD

Buyers still lack the conviction to drive price action. The metal has failed to really test the 1904.89 resistance area, where sellers have returned in early trading. Oscillations with lower highs may be the first indicator of a potential long-term trend change for Gold. Momentum indicators have flattened in bearish territory. 

 

 

 

 

 

OIL

WTI has begun to trade sideways once again as neither buyers nor sellers have any reason to drive price action. The economic situation remains the same with slow returns to capacity for most major oil buyers. Nonetheless, the 41.69 gap-fill line remains a target and a symbol of recovery. Momentum indicators have flattened in neutral territory.