Eurodollar Sell-Off Continues

  • 18 Jan 2021


The USD/JPY pair has stalled at the 103.72 support level, as a series of small-bodied candles indicate indecision with neither buyers and sellers are dominating price action. There is a well-established longer-term downtrend and we may expect further dollar weakness. Momentum indicators have flattened in bullish territory.






The GBP/USD pair has pulled back from the 1.368 resistance line as the pair continues to oscillate in a well-established uptrend. Higher lows indicate that bullish sentiment remains strong. Momentum indicators remain in bullish territory but appear to be starting downward trajectories.  






The EURUSD pair has broken the 1.214 support level as sellers have begun to drive price action. The ascending trendline has represented a long-term support for the pair and as price action approaches, sellers’ conviction will be tested. Momentum indicators have downward trajectories and have entered bearish territory. 






XAUUSD remains in the 1779-1860 trading range, with price action reflecting a moderate bearish bias. Buying pressure is climbing in today’s trading session. Momentum indicators have turned sharply bearish with MACD breaking the zero line to the downside.  






USOUSD appears to be undergoing a price reversal. Sellers have facilitated a break of the 52.63 support line with the metal returning back towards the lower bound of the $50 per barrel range. The next support level is likely to be the ascending trendline.  Momentum indicators have flattened in bearish territory.






US500 is pulling back from a recent price ceiling at the 3833 price level. The next support level is the 3670 price area which represents the floor of the current price range. It seems likely that the index will continue to consolidate within this range going forward. Momentum indicators are beginning downward trajectories. 






The JP225 index has broken the 28,347 price line in an apparent reversal. Conviction remains low in current trading to drive a full price reversal despite the rise in selling activity and likely represents a dip rather than a full correction. Momentum indicators are pulling back from bullish territory with RSI breaking the 70 line.




















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