The USDJPY pair has moved beyond another resistance zone at the 113.58 price line. The break confirms strong bullish sentiment and the continuation of a sharp rally that started at the beginning of October. Momentum indicators suggest that the rally won’t last with RSI testing overbought conditions.
The GBPUSD pair moved towards the descending trendline and pulled back in yesterday’s trading. Buyers are continuing the move in today’s trading and therefore we can expect another test. Momentum indicators support the bullish move and highlight further upside potential.
The Eurodollar is climbing back towards the 1.161 resistance line after a protracted sell-off. If price action can break this resistance level, it will confirm a price recovery is underway and the return to a previous consolidation range. Momentum indicators are bullish and undergoing reverals.
The USDCAD has broken a key support level at the 1.243 price line, as bearish sentiment rose sharply in yesterday’s trading session. Price action is now moving towards pandemic-level prices as a reflection of demand for oil. Momentum indicators suggest that the move will not last.
XAUUSD is testing the descending trendline yet a small-bodied candle in today’s trading may suggest waning bullish appetite. The trendline has represented a strong resistance zone foe the metal and has remained intact since May. Momentum indicators are bullish with MACD testing the zero line.
The USOUSD has found further support and demand in the commodities markets shows no sign of stopping. Momentum indicators also reflect strong bullish sentiment and RSI has moved beyond the 70 overbought line, where typically we may expect a reversal.
The HK50 has broken a key resistance area at the cross section of the descending trendline and the 25,029 price line. The break will confirm the reversal and take price action back to the consolidation channel between the 25,029- 26,825 price lines. Momentum indicators have sharp upward trajectories.