GBP/USD Reaches Overbought Conditions

• 10 Dec 2019

USD/JPY

 

The USD/JPY pair has moved to form a moderate break of the ascending trendline, with price action also breaking the 108.83 support level. A stall in price action has occurred at the 108.46 support level, despite selling activity. The sustained break does however indicate that the uptrend has come to an end. Momentum indicators have downward trajectories. 

 

    

 

 

 

EUR/USD

 

The Eurodollar continues to test the 1.107 resistance line as selling pressure began to rise when the pair was approaching the 1.112 resistance area. Given the fact that an uptrend is forming, price action may only pullback as far as the ascending trendline. Momentum indicators support bullish sentiment with both forming upward trajectories. 

 

 

 

 
 GBP/USD

 

The GBP/USD pair is reaching new price highs, at levels not seen since the start of the year. Optimism may soon be tempered as the UK election process unfolds and price action has stalled already. Momentum indicators suggest that the pair is overbought, as RSI pulls back from the 70 resistance level. However, MACD is maintaining an upward trajectory though is a lagging indicator.

 

 

 

USD/CHF

 

The USD/CHF sell-off appears to have decelerated with buyers returning to the pair. A bullish break of the 0.989 resistance level was short-lived as selling pressure began to rise once again. The near-term direction of price action will be determined by the conviction of buyers as the 0.985 support levels acts as a floor. Momentum indicators remain in bearish territory.  

 

 

 

 

USD/CAD

 

The USD/CAD pair has made a strong recovery as U.S. Dollar buyers returned to break several resistance levels. However, sellers returned after a break of the 1.323 resistance line, which may signify the end of the recent rally. Momentum indicators have stalled in neutral/bullish conditions. 

 

 

 

SILVER

 

Silver had been bouncing along the 16.85 support level, yet sellers have begun to dominate price action to test the 16.55 price level. Sellers have failed to break this resistance line, which represents an exhaustion area, where significant momentum has been required to break beyond this price area. Momentum indicators remain in bearish territory.  

 

 

 

 

GOLD

 

Gold buyers have had the edge in recent price action, however, sellers have begun to dominate taking the metal back through the 1468 support level. The 1446.82 support level represents a recent price floor for the current trading range. Momentum indicators remain in bearish territory. 

 

 

 

 

OIL

 

WTI price action continues to be volatile, with strong moves by both buyers and sellers. Buyers have determined the direction of price action in recent trading. Yet, despite buying pressure, the commodity has failed to move into the $60 per barrel range. Momentum indicators have flattened in bullish territory.