Indices Sell-Off As Trading Week Draws To A Close

• 24 Feb 2022

USD/JPY

USDJPY price action has narrowed with small-bodied candles moving back towards the ascending trendline which has been a key support level. Typically, when price action narrows, near support levels a breakout can be anticipated. Momentum indicators are moderately bullish. 

 

 

 

 

GBP/USD

The GBPUSD pair is beginning to descend after yet another test of the trendline, which resulted in rising selling activity. The pair is dominated by bearish sentiment and rallies are short-lived, therefore unless there is a major change in fundamentals, oscillations will continue to hit lower highs. 

 

 

 

 

EURUSD

The EURUSD pair has been affected by a rise in bearish sentiment, albeit with scant conviction as denoted by the small-bodied candles. Long upper shadows signal sellers are more active in recent trading and therefore we see another test of the 1.113 price line. 

 

 

 

 

XAUUSD

XAUUSD has broken yet another resistance zone at the 1906 price level, as buyers continue to drive near-term price action. The rally started at the beginning of the month and has had consistent support however, momentum indicators reflect overbought conditions.  

 

 

 

 

 

USOUSD

USOUSD has tested the 93.78 resistance line on several occasions as a new price ceiling is established. No breaks have materialised from these tests, yet bullish conviction remains strong. Momentum indicators reflect further upside potential, though RSI is fast approaching overbought conditions. 

 

 

 

 

US500

The US500 index has plummeted in recent trading, as the sell-off began to accelerate, breaking a recent consolidation range at the 4306 support level. In today’s session, price action has already moved below a longer-term support level at the 4227 support line. Momentum indicators suggest the sell-off may be coming to an end.

 

 

 

 

WS30

The WS30 index has broken several support levels, as the sell-off begins to build speed and strong bearish sentiment dominates the trajectory. A break of the long-term support level at the 33,155 price line signals strong bearish conviction.