US Dollar Comes Under Pressure

• 24 Jun 2021

USD/JPY

USDJPY has broken the upper bound of the ascending triangle as the dollar finds support mid-week. Current conviction remains weak yet long-term bullish sentiment is well-established. Momentum indicators are bullish with RSI approaching overbought conditions.

 

 

 

 

GBP/USD

The GBPUSD pair is making moves toward the 1.399 price level which represents the upper bound of a recent consolidation range. A return to the 1.399- 1.421 range would represent strong buyers’ intent. Momentum indicators have flattened in bearish territory.

 

 

 

 

EURUSD

The Eurodollar has rebounded from the ascending trendline and 1.184 support level. Selling pressure is still apparent, especially in yesterday’s trading. The pair therefore may consolidate within range with the 1.198 price line acting as the upper bound. Momentum indicators have flattened in bearish territory.

 

 

 

 

USDCAD

The USDCAD pair has rejected the ascending trendline as bearish sentiment continues to dominate the pair. A long-term downtrend has been established since mid-March 2020. Momentum indicators have pulled back from overbought conditions and have flattened in bullish territory.

 

 

 

 

XAUUSD

XAUUSD has stalled completely at the 1776 price line, as a series of doji/small-bodied candles suggest that neither buyers nor sellers have the appetite to drive price action after the recent sell-off. The ascending trendline is acting as a support level. Momentum indicators suggest the metal is oversold.

 

 

 

 

USOUSD

The USOUSD is testing the 72.44 price line as the commodity has failed to make moves beyond this price range. Bullish conviction is clearly waning yet fundamentals do not justify bearish moves. Therefore the commodity is likely to languish with the $70 per barrel range until the fundamentals picture changes. Momentum indicators have flattened in overbought territory. 

 

 

 

 

JP225

The JP225 is moving back from the 28,532 support level as the index continues to oscillate within the 28,532- 29,437 price levels. Longer-term, a bearish trend is forming with lower highs. Momentum indicators have flattened in neutral/bullish territory.