Can The Eurodollar Resume Its Bullish Run?

• 20 Oct 2020

USD/JPY

USD/JPY buyers have returned after stalling at the 105.29 price level. Whether the pair can reach or even test the range ceiling at the 106.05 price level remains to be seen. Buyers conviction will be tested. Momentum indicators have upward trajectories.  

EUR/USD

The Eurodollar has found support at the 1.172 support level and ascending trendline which has represented a strong support area for the pair. The pair is now re-entering into a previous consolidation channel. Momentum indicators have flattened in neutral territory. 

GBP/USD

The GBP/USD pair has failed at the 1.298 price level despite buying pressure in yesterday’s trading session. Price action once again closed below the resistance area which is proving to be a hurdle in recent trading. Momentum indicators are neutral/bearish.  

USD/CHF

The USD/CHF pair continues to consolidate within the 0.903- 0.918 range. If there is any bias, it would lean bearish especially given the longer-term trajectory of the pair and the fact that in recent trading the pair has been unable to really test the range ceiling. Momentum indicators have flattened in neutral/bearish territory. 

USD/CAD

The USD/CAD pair has rejected the 1.322 resistance line as the current trading range remains intact. Looking at price action it appears that buyers will make another attempt at the resistance area. Conviction will be tested. Momentum indicators have flattened in neutral/bearish territory. 

GOLD

Gold is starting to pull away from the descending trendline as the metal starts to consolidate just below the 1924.49 resistance level. Small-bodied candles indicate that neither buyers nor sellers are dominating price action. Momentum indicators have flattened in bearish territory. 

OIL

WTI rally was unsurprisingly short-lived given the lack of conviction. Small-bodied/doji candles represent the end of the bullish sentiment as neither buyers nor sellers appear willing to drive price action. The commodity will trade in range between the 36.93 and 41.69 price levels. Momentum indicators are flat.