ASX200 Sell-Off Has Stalled

  • 11 Jan 2022


The USDJPY pair has pulled back from the 116.15 ceiling with a break of the 115.41 support line. Buyers appear to have returned after the break, with price action moving closer to a strong support area at the ascending trendline. Bullish rebounds typically take place at the trendline. 






The GBPUSD pair is testing a key resistance area at the 1.361 resistance line and the descending trendline. Small-bodied candles suggest that buyers are losing steam and that the recent rally may not last. Overall, longer-term sentiment remains bearish. Momentum indicators are bullish with RSI flattening just below the overbought line.






The EURUSD continues to move horizontally, yet price action has moved in a moderate uptrend away from the 1.120 support line. Price action is fast approaching the descending trendline where bearish rebounds typically take place.  Momentum indicators have upward trajectories.   






The USDCAD pair has stalled at the 1.263 support line as, once again, the pair fails to break through this price area. The pair may now continue to consolidate within the 1.263-1.282 range, unless conviction returns to sellers. Momentum indicators have downward trajectories with MACD breaking the zero line.






XAUUSD price action continues to move higher and the next test will likely be the 1831.27 resistance line. Buyers conviction into the move will need to be strong to overcome this well-established resistance line. Momentum indicators are moderately bullish although have stalled just above the neutral/bullish zone. 






ASX200 has plummeted back towards the 7405 price line after touching the recent price ceiling at the 7617 resistance line. All recent gains were stamped out in 5 trading sessions indicating significant bearish sentiment for the index.  Momentum indicators have begun to flatten out after pulling away from overbought conditions.






The NDX100 index has broken a key consolidation channel at the 15675 support line. A spike to touch the 15169 support line resulted in a strong bullish comeback. In today’s session price action has stabilized and it remains to be seen whether buyers have the conviction to drive a break back. 


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