Evening Star Doji Signals Reversal For US500

• 28 Oct 2021

USD/JPY

The USDJPY is moving into a tight consolidation channel as price action has narrowed after a pullback from the 114.38 resistance line. Neither buyers nor sellers appear to have the conviction to dominate near-term price direction therefore, the pair is likely to move horizontally until the fundamentals picture changes.  

 

 

 

 

GBP/USD

The GBPUSD pair is tracing the descending trendline downwards with sellers becoming more active in price action. The trendline will now act as a support level for the bearish move. Momentum indicators reflect the bearish sentiment with downward trajectories.  

 

 

 

 

EURUSD

The EURUSD price action has begun to tighten within range as oscillations have narrowed. As the pair approaches the apex the probability of a breakout increases. Doji candles in the last two trading sessions indicate that neither nor sellers are dominating.  

 

 

 

 

XAUUSD

The XAUUSD is beginning to build bullish momentum as a bullish flag formation indicates the uptrend will continue. The next target is the 1831 resistance zone which has so far, successfully contained price action. Momentum indicators have upward trajectories with MACD breaking the zero line to the upside.   

 

 

 

 

USOUSD

USOUSD is beginning to reverse a steady bullish run which began in mid-August. Sellers have returned and the commodity may now breakout of the $80 per barrel range. Increasing demand appears to have been cooled by a rise in supply levels in the last week. 

 

 

 

 

US500

The US500 has pulled back to a previous price ceiling at the 4545 support level. An evening star doji pattern at the top of the market indicates that a bearish reversal is on the cards. A break of the support line would confirm the reversal.   

 

 

 

 

ASX200

The ASX200 has stalled mid-rally, with sellers returning at the 1751 price line to drive a trend change. The index has been ranging between the 7138 and 7617 price levels. Momentum indicators remain in bullish territory yet are also beginning to pullback.