WTI Suffers Extended Sell-Off

• 1 Oct 2019

USD/JPY

 

The USD/JPY pair is once again heading back towards the 108.46 resistance line after an initial rejection. The descending trendline is currently acting as a support level for the pair, where previously it acted as a resistance area. This could be an indication of a longer- term trend change. Momentum indicators had flattened in bullish territory but have begun an upward trajectory in recent trading. 

 

   

 

 

 

EUR/USD

 

The Eurodollar has broken several support levels including the 1.092 price line which represents a long term price floor. Given the trajectory of the trendline, the overall direction for the pair is bearish. Momentum indicators have moved further into bearish territory, approaching oversold conditions. 

 

 

 

 
 GBP/USD

 

The GBP/USD pair is testing the 1.228 support level which has been a key resistance area on previous occasions. The descending trendline highlights a longer term bearish trend; unsurprising given geopolitical conditions. The near-term direction of price action will likely result in the pair heading towards the 1.201 support level. Momentum indicators have turned sharply bearish. 

 

 

 

USD/CHF

 

The USD/CHF pair has broken the 0.993 and 0.997 resistance levels as buyers’ conviction rises significantly. The next target for the pair is the 1.001 resistance line. Momentum indicators are extending their position into bullish territory with RSI approaching overbought conditions. 

 

 

 

 

USD/CAD

 

The USD/CAD pair is testing the 1.323 support level which has represented a strong hurdle for sellers. The next target for sellers is the 1.319 support level. The pair has entered into a symmetrical triangle pattern indicating that a breakout is imminent. The direction of the breakout will determine the near-term trend for the pair. Momentum indicators have flattened in neutral territory. 

 

 

 

SILVER

 

Silver has broken the 17.42 support level as well as the ascending trendline, indicating that sentiment has turned sharply bearish. The pair is fast approaching the 16.83 price line. Support for the dollar has turned investors away from the metal. Momentum indicators have turned sharply bearish with MACD heading towards the zero line and RSI entering into the sell channel.

 

 

 

 

GOLD

 

Gold has broken both the 1485.27 price level as well as the ascending trendline. On previous occasions, the metal has rebounded from this strong support level which would send price action back towards the 1530 price area. However, price action may head towards the 1446.82 support level. Momentum indicators have turned bearish with MACD breaking the zero line and RSI moving towards oversold conditions. 

 

 

 

 

OIL

 

A full bearish reversal has taken place after a spike in price action and WTI price has now returned to test the $54 per barrel price area. The break of the ascending trendline is significant as on numerous previous occasions, price action has rebounded from this support area. Momentum indicators are have bearish trajectories.