XAUUSD Rally May Be Short-Lived

• 7 Sep 2021

USD/JPY

The USDJPY pair has been constrained by selling pressure, as each test of the descending trendline has not resulted in a break. Buyers returned in yesterday’s trading yet price action continues to follow the trendline. Momentum indicators have flattened in neutral territory.  

 

 

 

 

GBP/USD

The GBPUSD has begun to stall after the break of the trendline, as small-bodied candles take price action into a sideways trading trajectory. There is an apparent lack of appetite from both buyers and sellers to dominate price action. Momentum indicators have upward trajectories.

 

 

 

 

EURUSD

The Eurodollar has made several tests of the 1.188 resistance level. Each test has not resulted in a break and a series of small-bodied candles around this resistance zone indicate that buyers have lost steam. Price action may now be contained within the current range. Momentum indicators are bullish. 

 

 

 

 

USDCHF

The USDCHF has repeatedly tested the descending trendline without a break and as such has traced the trendline lower despite several bullish attempts. The trendline has formed as a key obstacle to buyers and significant conviction will be required to facilitate a break. Momentum indicators have flattened in neutral/bearish territory. 

 

 

 

 

USDCAD

The USDCAD has descended towards the ascending trendline and may now remain contained within the 1.243-1.274 trading range. A series of small-bodied candles as price action approaches the trendline indicates that bearish sentiment is beginning to wane. Momentum indicators have downward trajectories.

 

 

 

 

XAUUSD

The XAUUSD has climbed towards the 1831.27 resistance line and is also testing a descending triangle. On each previous occasion, a test has resulted in a retracement, therefore significant bullish conviction will be required to sustain the rally. Momentum indicators are bullish, with RSI approaching overbought conditions.

 

 

 

 

USOUSD

The USOUSD has rejected the descending trendline yet selling activity has not risen sharply, indicating that price action is not currently being driven by bearish sentiment. Price action, instead, reflects fading bullish momentum. Momentum indicators have flattened in neutral territory.