The USDJPY pair has broken a long-term resistance line at the 112.26 price level and the strong bullish move beyond this resistance zone signals strong appetite and potential for a long, protracted rally. Momentum indicators, however, highlight that the pair is approaching overbought conditions and that the rally may slow.
The GBPUSD pair continues to stall at the 1.361 resistance line as buyers currently lack the appetite to drive a rally beyond the resistance level. A full break would return price action to a previous longer-term consolidation channel. Momentum indicators have upward trajectories.
The Eurodollar continues to stall at the 1.154 price level, as doji candles indicate indecision and suggest that the sell-off has lost steam. A longer-term bearish bias is well-established and significant bullish conviction will be required to overcome the current long-term trajectory.
The USDCHF has finally rebounded from the 0.925 support level after a failed series of attempted breaks, as sellers lost momentum. Oscillations may now remain within the 0.925-0.935 price range and moves will be determined by buyers’ appetite. Momentum indicators have flattened in bullish territory.
The USDCAD sell-off continues which has taken price action back towards the 1.243 support level, which has been been a significant obstacle for sellers in the past. As such, it seems likely that the current consolidation range will remain intact.
The XAUUSD continues to test the lower bound of a recent trading range at the 1753 price level. A series of small-bodied candles suggest a reluctance from both buyers and sellers to drive price action. A spike in selling pressure in the last trading session failed to drive a break, therefore the status quo remains.
The USOUSD has surged to the $80 per barrel range reaching multi-year highs as the current rally continues to find support. Demand factors are likely impacting prices as the Northern Hemisphere moves into the winter heating season. Momentum indicators highlight potential for a pullback.