Bearish Reversal For Precious Metals?

• 19 Aug 2019

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USD/JPY

 

USD/JPY buyers are beginning to build some momentum despite the selling pressure since the pair broke the descending trendline. The next target is the 107.16 price level which has been a key support level in the past. Momentum indicators have moderate upward trajectories. 

 

 

 

 

 

EUR/USD

 

The Euro is testing the 1.107 support level which represents a recent price low as the pair continues to come under pressure with US Dollar recovery. A bearish cross on MACD indicates further downside potential for the pair which is also reflected on RSI which is yet to reach oversold conditions. 

 

 

 

 
 GBP/USD

 

The GBP/USD pair has made a mild recovery from the extended but moderate sell-off since the beginning of May. Buyers have returned to take price action higher despite moderate selling pressure. A reversal appears to be underway.  The reversal is also confirmed by momentum indicators which are beginning upward trajectories and moving out of oversold conditions.  

 

 

 

USD/CHF

 

The USD/CHF pair has broken the descending trendline and is approaching the 0.981 support level. A series of small-bodied candles reflect low activity in the pair calling into question the conviction of buyers. Momentum indicators have turned bullish. 

 

 

 

 

USD/CAD

 

The USD/CAD pair moved back below the 1.330 resistance line as buyers were unable to move price action higher. The strong bearish move may represent a pullback in the uptrend. Momentum indicators are bullish, however, RSI is approaching overbought conditions. 

 

 

 

SILVER

 

Silver’s rally continues to stall as sellers begin to return to the metal, albeit not in convincing style. A support level exists at the 16.78 price line, therefore, in order to confirm the bearish move; a break would be necessary. Momentum indicators are also pulling back from bullish positions indicating a reversal may be underway.

 

 

 

 

GOLD

 

Gold continues to test the ascending trendline which is currently acting as a resistance level for the pair. A series of doji candles may indicate a slowdown in the rally, as price action pulls away from the trendline. Momentum indicators are also pulling back from strongly bullish positions and RSI has broken the 70 resistance line. 

 

 

 

 

OIL

 

WTI continues to test both the descending trendline and the 54.92 support level with bullish momentum. Previous breaks have resulted in price action heading towards the 58.14 resistance line. Small- bodied candles represent indecision, indicating a lack of appetite from buyers. Momentum indicators are neutral if slightly bearish. 

 

 

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