USD/COP trades flat as seller pressure dominates and resistance caps gains

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Highlights

USD/COP trades below all major moving averages, confirming strong downward momentum across short and long time frames.
Bearish momentum is supported by negative MACD, oversold oscillators, and a strong sell signal from the Awesome Oscillator.
USD/COP is expected to fluctuate between COL$3,145 to COL$3,177 over the next 2 to 3 days, with a high probability of further declines if COL$3,145 support fails.

Downside signals intensify as key technical barriers cap price

On the technical front, USD/COP is trading below the MA-20 at COL$3,177 and MA-50 at COL$3,176 on the hourly chart, as well as below the MA-200 at COL$3,434 on the daily timeframe. The Ichimoku Kijun sits at COL$3,176, serving as immediate resistance. Momentum indicators are predominantly negative: MACD signals further selling, ADX remains neutral, while RSI at 36.58, along with Stochastic RSI, CCI, and Bull/Bear Power, all reflect oversold and seller-driven conditions. The Awesome Oscillator provides a strong sell signal, with the price near the session's low amid low volatility.

Range-bound trading expected as downside risk outweighs rebound

In the short term, USD/COP is expected to fluctuate within the COL$3,145 to COL$3,177 range over the next 2–3 trading days, representing a typical volatility band relative to current levels. The likelihood of an upward move is very low, while a downward move is considered highly probable. A sustained recovery would require a clear breakout above the COL$3,176 resistance, whereas a drop below COL$3,145 would confirm additional downside momentum.

Anton Kharitonov, expert at Traders Union, sees persistent bearish pressure in USD/COP as technical indicators remain negative. He notes the lack of supportive news and the inability to reclaim key resistance at COL$3,176. Downside momentum is strong, with low odds of a reversal in the near term. "Until USD/COP breaks above COL$3,176, I remain defensive and expect further declines," he states.

Earlier, analysts noted that USD/COP was under sustained bearish pressure, with technical indicators pointing to ongoing weakness. The latest developments affirm this downward trend, making a break below COL$3,145 the primary risk for traders monitoring short-term downside momentum.

Source of Data: USD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.