U.S. Dollar Weakness Persists

• 13 Oct 2020

USD/JPY

USD/JPY sellers are beginning to dominate price action with the pair heading back towards the range floor at the 104.67 price level. The longer-term downtrend remains intact, with yet again lower highs. Momentum indicators have moved towards the neutral zone.  

 

 

 

 

 

EUR/USD

The Eurodollar is tracing the ascending trendline and oscillations continue to narrow indicating that a breakout could be on the cards. A target exists at the 1.192 resistance area where buyers have been held on previous occasions. Momentum indicators have upward trajectories. 

 

 

 

 

 

GBP/USD

The GBP/USD pair is heading back towards the 1.311 price level and ascending trendline (which previously acted as a support level). Is the move justified by Pound strength? Not according to fundamentals and therefore is likely due to residual weakness in the US dollar. Momentum indicators have upward trajectories.  

 

 

 

 

 

USD/CHF

The USD/CHF sell-off continues as the pair moves closer towards the 0.903 support level and the descending trendline. It appears that the longer-term downtrend has resumed. Momentum indicators have turned bearish, with a downside break on MACD. 

 

 

 

 

 

USD/CAD

The USD/CAD has stalled mid-range between the 1.302 and 1.322 price levels as buyers have slowed the move. A recent low exists at the 1.295 support level where a bullish rebound previously took place. Momentum indicators are neutral/bearish. 

 

 

 

 

 

GOLD

Gold buyers have failed to push price action beyond the 1924.49 price level, where price action has been held. A break of the descending trendline is significant as it suggests that sentiment has turned bullish. Momentum indicators have upward trajectories. 

 

 

 

 

 

OIL

WTI sellers have returned at the 41.69 resistance level and the commodity is now testing the 39.02 support level. Oscillations are beginning to narrow within the 36.93-41.69 range. Momentum indicators remain in neutral/bearish territory.