Eurodollar Support Continues

• 26 Oct 2020

USD/JPY

The USD/JPY pair is once again rebounding from the 104.53 price floor. Despite the longer-term bearish sentiment, the pair is still unable to push below this price floor. More conviction is required from sellers. Momentum indicators remain in bearish territory.  

 

 

 

 

 

EUR/USD

The Eurodollar continues to trace the ascending trendline, as oscillations begin to narrow into the apex of an ascending triangle. As such, we may anticipate a bullish breakout as the pair moves higher. The 1.192 resistance area remains a key hurdle. Momentum indicators have upward trajectories. 

 

 

 

 

 

GBP/USD

GBP/USD sellers have returned, taking the pair back towards the 1.298 support level. Given the bullish momentum that was required to break this support area, we may expect the current trajectory to represent a pullback in the shorter-term rally.  Momentum indicators have flattened in bullish territory.  

 

 

 

 

 

USD/CHF

The USD/CHF pair continues to test the 0.903 support level which represents a significant obstacle to buyers as several previous tests has resulted in favour returning to buyers. It appears, conviction remains low and therefore another bullish rebound may be on the cards. Momentum indicators remain in bearish territory. 

 

 

 

 

 

USD/CAD

The USD/CAD has stalled mid-range between the 1.302 and 1.322 price levels. Small-bodied candles indicate indecision as the pair languishes in no man’s land. Another attempt may be made by buyers to breach the current channel but appetite currently remains low. Momentum indicators remain in bearish territory. 

 

 

 

 

 

GOLD

Gold has repeatedly failed to break the 1924.49 price level and as such, the metal has traced the descending trendline as bearish sentiment continues. The metal is moving closer to the apex of a descending triangle. Momentum indicators have flattened in neutral/bearish territory. 

 

 

 

 

 

OIL

WTI is moving away from the 41.69 price ceiling. Currently the commodity is testing the 39.02 support level, with a range floor existing at the 36.93 price level. Oscillations are narrowing yet there appears to be no build-up in momentum that may suggest a potential breakout. Momentum indicators have flattened in neutral territory.