The Eurodollar Is Flying

• 3 Dec 2020

USD/JPY

The USD/JPY pair has spiked through the descending trendline, however,  price action has been contained within the triangle pattern for the time being. The 104.29 support level is proving to be a sticking point for the pair. Selling pressure rises each time the pair approaches the trendline. Momentum indicators have flattened in bearish territory.

 

 

 

 

GBP/USD

The GBP/USD pair has been unable to sustain a break of the 1.338 resistance level, despite clear buying pressure. Therefore this key price level has a psychological component to it. It appears that an ascending triangle pattern may be forming in longer-term price action, regardless, sentiment is bullish. Momentum indicators are bullish with RSI testing the 70 resistance line. 

 

 

 

 

EURUSD

The Eurodollar shows no sign of slowing down, with strong bullish moves to clear any nearby resistance areas.  The pairs in now therefore approaching a consolidation area from the beginning of 2018. These moves are not justified from a macroeconomic perspective. Momentum indicators have upward trajectories, with RSI moving beyond overbought conditions. 

 

 

 

 

USDCHF

The USDCHF pair has plummeted passed the 0.898 support level, as sellers have begun to dominate price action after several months in a consolidation channel between the 0.903 and 0.928 price levels. The longer-term bearish trend may now resume. Momentum indicators are bearish with RSI touching oversold conditions. 

 

 

 

 

XAUUSD

XAUUSD has rebounded before reaching the 1700 psychological level and has moved beyond the 1810.10 resistance level. The question is whether the move is an oscillation in an otherwise bearish trend or a complete price reversal. Answers will come in the next few trading sessions. Momentum indicators have turned bullish.

 

 

 

 

US500

The US500 is testing a recent high at the 3670 price level as the index has managed to break out of a consolidation channel between the 3,242-3,574 price levels. Overall, longer-term the trajectory is bullish so we may expect a break to materialise and it is just a case of when. Momentum indicators have flattened in bullish territory with RSI testing the 70 resistance line.