USD/CAD Moves To Test Price Ceiling

  • 2 Dec 2021


The USDJPY pair has pulled back to the 112.77 support line and ascending trendline. Currently, buyers have begun to return at this support level and price action may move forward hugging the trendline. Momentum indicators have downward trajectories.   







The GBPUSD pair has begun to narrow into a tighter trading range, as a series of doji candles represent indecision. Price action has touched the 1.320 support line yet bearish conviction is insufficient to drive a break. Momentum indicators have flattened at the oversold line. 






The EURUSD has begun to recover from the 1.117 price floor and is now testing the 1.132 resistance line. Small-bodied candles indicate low bullish conviction and therefore a break may not materialise. Momentum indicators are bullish forming reversals. 






The USDCAD has touched the 1.282 resistance line and since, sellers have returned, indicating another retracement is on the cards for the pair. Price action will therefore remain within the current consolidation range. Momentum indicators are bullish with RSI testing overbought conditions.






XAUUSD price action is beginning to tighten as the pair descends back towards the 1753 support line. Selling pressure has risen sharply during the present trading week and indicates a longer-term bearish move will begin.  Momentum indicators are bearish with MACD testing the zero line. 






The USOUSD index has plummeted and is now testing the 66.45 support line, where a break was relatively short-lived and buyers have returned in early trading. This represents the lower bound of an established consolidation channel and therefore a sustained break would represent strong bearish sentiment. 






The ASX200 index has begun to climb back from the 7138 support level as buyers, once again, return to contain price action. A descending trendline defines the upper bound of the range and is typically the location of bearish pullbacks. We may expect price action to begin climbing back towards the trendline.


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