Bearish Reversal Underway For ASX200

• 10 Sep 2021

USD/JPY

The USDJPY pair has once again stalled at the ascending trendline, given the trajectory of the trend and the strength of the support level, bullish sentiment is likely to continue. A rebound may once again take the pair closer to the upper bound of an ascending triangle. Momentum indicators have flattened in neutral territory.  

 

 

 

 

GBP/USD

The GBPUSD pair is climbing back towards the descending triangle, as bullish sentiment has begun to climb at the close of the trading week. Each previous test of the descending triangle has resulted in a bearish rebound and therefore the current trading range is likely to remain intact. Momentum indicators are bullish.

 

 

 

 

EURUSD

The Eurodollar is set to continue oscillating within a tighter trading range between 1.177 and 1.188 price levels.  Despite apparent bearish sentiment in recent trading, the pair has stalled before reaching the 1.177 support line suggesting waning bearish momentum. Momentum indicators are bullish. 

 

 

 

 

XAUUSD

The XAUUSD has moved back to test the 1795 resistance line after breaking range in yesterday’s trading. The selling activity proved to be short-lived, yet neither buyers nor sellers appear to have the appetite to drive price action. Momentum indicators have flattened in neutral territory.

 

 

 

 

JP225

The JP225 index has surged back towards a price ceiling not seen since February, with the move confirming a total price recovery from the previous protracted downtrend. A break of the 30,467 resistance zone would provide weight to the rally. Momentum indicators suggest the pair is overbought. 

 

 

 

 

US500

The US500 has pulled back towards the 4467 support line after breaking the ascending trendline. A break would confirm a reversal yet bearish momentum only appears moderate. The break of the trendline is significant, however, and represents a weakening of bullish sentiment. Momentum indicators have downward trajectories.

 

 

 

 

ASX200

The ASX200 index has broken the ascending trendline and 7399 support level indicating a bearish reversal is underway. If the break can be sustained, we may see a bearish trend forming for the index. Fundamental factors will play a significant role in longer-term price action. Momentum indicators remain bearish.