A Bearish Trend Forming For Gold

• 7 Oct 2020

USD/JPY

The USD/JPY pair is edging closer to the range ceiling at the 106.05 price level. Although price action is bullish, buyers are not yet dominating. There is a clear long-term downtrend, however, therefore any bullish moves are likely to be short-lived. Momentum indicators have flattened in neutral territory.  

 

 

 

 

 

EUR/USD

The Eurodollar is coming close to challenging the ascending trendline once again. On previous occasions, a bullish rebound has taken place at this support area and the longer-term rally has continued. Momentum indicators are forming upward trajectories. 

 

 

 

 

 

GBP/USD

The GBP/USD pair is tracing the ascending trendline yet sellers are still active; driving the pair away from the 1.298 resistance level. The pair may now consolidate within the current trading range in the near-term. Momentum indicators have upward trajectories.  

 

 

 

 

 

USD/CHF

The USD/CHF has struggled to breakaway from the 0.918 support level as buyers have held price action at this support area. A bearish trend has been well-established in the longer-term. Momentum indicators have flattened in bullish/neutral territory. 

 

 

 

 

 

USD/CAD

The USD/CAD pair has returned and begun to pull away from the 1.322 support area as well as the ascending trendline. The next target for the pair is the 1.343 resistance level which has proven to be a hurdle for the pair in a bid to return to pre-Covid price levels. Momentum indicators have flattened in bullish territory. 

 

 

 

 

 

GOLD

A shorter-term downtrend as formed for Gold with a descending trendline line acting as a resistance area for the metal. Sellers have returned at the 1904.89 price level, therefore bearish sentiment continues. Whether the trend becomes more long-term will be determined in the next trading sessions. Momentum indicators have upward trajectories. 

 

 

 

 

 

OIL

WTI has rebounded once again from the 36.93 support level yet bullish momentum is yet to force a break of the 39.02 price area. Whether the commodity can sustain the bullish momentum and return to the $40 per barrel range remains to be seen. Momentum indicators remain in bearish territory.