U.S. Dollar Weakness Subdues Markets

• 24 May 2021

USD/JPY

The USDJPY is tracing the trendline higher as oscillations reach higher lows, confirming a bullish bias. The trendline will remain a key support level for the pair. U.S. dollar weakness is preventing the rally from gaining momentum. Momentum indicators have flattened in neutral/bullish territory.

 

 

 

 

GBP/USD

The GBPUSD pair has found price stickiness at the 1.413 resistance zone. Bulls appear to lack the appetite to drive the rally yet bears also lack conviction. A long-term bullish trend remains intact and support by an ascending trendline. Momentum indicators suggest that the pair is overbought. 

 

 

 

 

 

EURUSD

The Eurodollar has failed to clear the 1.217 resistance area as each rally attempt is subdued by a rise in selling activity. A sharp uptrend remains intact as oscillations continue with the trendline in support. Momentum indicators remain bullish. 

 

 

 

 

USDCHF

The USDCHF has stalled at the 0.898 support level which is a price area that represents pandemic-related weakness. The U.S. Dollar has struggled against the Franc since the end of March 2021. Fundamental factors will have the biggest influence of this pair. Momentum indicators have flattened in bearish territory.

 

 

 

 

USDCAD

USDCAD has stalled at the 1.206 price level, as the recent sell-off appears to have cooled. A series of doji candles at the price level indicate indecision. The pair is largely influenced by moves in the oil markets which have also cooled in recent weeks. Momentum indicators are bearish.

 

 

 

 

XAUUSD

The XAUUSD has started another climb towards the 1950 price high. Momentum is currently weak and bulls will need to find conviction to drive the rally. The metal may now consolidate within this range. Momentum indicators signal that the metal is overbought.  

 

 

 

 

USOUSD

USOUSD weakness has subsided and bulls appear to be returning as price action maintains the $60 per barrel range. The 66.72 price level remains an obstacle for the commodity. Momentum indicators have downward trajectories.