ASX200 Begins Moderate Recovery

• 21 Sep 2021

USD/JPY

The USDJPY pair continues to oscillate within a tighter range, with the descending trendline containing price action to the upside (of which there have been more tests). A breakout may be imminent as price action moves towards the apex. Momentum indicators are neutral. 

 

 

 

 

GBP/USD

The GBPUSD pair has stalled just before another test of the 1.361 support line, indicating that sellers lack the conviction to drive a break out of the 1.361-1.395 trading range. Momentum indicators are bearish with MACD breaking the zero line.

 

 

 

 

EURUSD

The Eurodollar has stalled at the 1.170 support level and it appears that buying pressure will continue as the pair start to move away from the support level. Conviction currently remains low and the next test will be the 1.177 resistance line. Momentum indicators remain in bearish territory.

 

 

 

 

USDCAD

The USDCAD has pulled back after a test of the 1.282 resistance line and despite heavy buying activity, the pair has been unable to break this recent price high. Given the longer-term trajectory of price action, a break seems imminent. Momentum indicators remain in bullish territory. 

 

 

 

 

XAUUSD

XAUUSD has begun to climb away from the 1753 support line as buyers have returned after the sell-off. Typically, rallies have been contained by the descending trendline which is narrowing the trading range. Given the bearish long-term trajectory, this pattern of price action is likely to continue.  

 

 

 

 

ASX200

The ASX200 has rebounded from the 7138 support line as buyers have returned to the index. A sharp sell-off which broke the long-held 7399 support area appears to have faded. A break of the ascending trendline is significant, however, given how long price action had been contained. Sentiment appears to have turned bearish.  

 

 

 

 

JP225

The JP225 index spiked towards and retraced from at the 29,371 support line and buyers have returned to take the index back to the mid range. A new lower bound is now established for the index and as such, price action will likely oscillate within this range. Momentum indicators have downward trajectories.