During last week’s analysis, we observed that the dollar’s weakness had served as a propellant for some pairs while acting as an headwimd for others. In this week’s analysis, we will notice a bit of change due to the improving performance of the dollar-for-dollar pairs. Let’s dive straight in and see.
EURUSD: Bullish
Over the past six trading sessions, price action in the EURUSD market seems to have turned a bit bearish. This has caused the pair to retrace around 1.08588. In this case, the strengthening USD market caused a moderate retracement. However, in this ongoing session, bulls seem to have suddenly regained consciousness and have pushed the price from 1.08588 to 1.09077. Consequently, price action remains above the middle limit of the Bollinger Bands. Also, an upside crossover seems to be underway on the Stochastic Relative Strength Index (RSI) and points to a gain in upside momentum. At this point, price action seems to have regained upside traction and may retrace the 1.09500 price level.
GBPUSD: Bullish
In the previous session, GBPUSD appeared to be charting a new course. However, the last price candle on this chart seems to have averted that course, as the price gets pushed back upwards and towards the 1.2440 price mark. With the help of the last price candle, the GBPUSD pair price now stands at 1.2436. Also, price action has moved further upward above the middle band of the Bollinger Bands indicator. Meanwhile, the RSI lines are still moving into the oversold region of the indicator. Nevertheless, the appearance of the last bullish price candle suggests that price action is well positioned to keep rising towards the 1.2500 mark.
USDCHF: Bearish
Price action in the USDCHF market suggests that the Swiss franc may be doing better than the US dollar. This opinion comes from the fact that price action in the USDCHF market keeps falling towards lower support levels. Price activity has broken through the 0.9080 support level. Meanwhile, the RSI indicator has yet again displayed a bearish crossover while still in the oversold region. This suggests that price action in the USDCHF market may keep falling towards 0.9003.
USDCAD: Bearish
USDCAD had recently retraced upwards up until the past two trading sessions. However, since the previous trading session, prices have kept falling toward support. It should be noted that price action stays below the MA (Moving Average) of the Bollinger Bands indicator. Furthermore, the RSI curves seem to attempt a crossover, following the appearance of the last two price candles on this chart. If the dollar continues to stay weak, the pair price will fall toward the 1.3441 price level.
AUDUSD: Bearish
Price action has stayed depressed in the AUDUSD market as price action continues to slide forwards toward lower support. The last price candle on this chart looks like an inverted hammer. The appearance of this price candle suggests that sellers are still pretty active in this market. Also, the lines of the Stochastic RSI are now in the oversold region and are close to performing a crossover. Should this crossover eventually occur, price action may retrace above the 0.6690 price mark. Traders will have to wait for the move to develop before placing an entry around the 0.6677 price mark.
EURJPY: Bullish
EURJPY price action looks hyperactive but bullish. This can be seen as price candles seem to be jumping by leaps and bounds. Nevertheless, the last price candle here is bearish, and the bullish opinion comes from the indications coming from technical indicators. The last price candle stays high above the middle band of the Bollinger Bands indicator. Also, the RSI indicator lines maintained their upside orientation after they performed a bullish crossover. Consequently, despite the appearance of the last bearish price candle on this chart, it appears that price action may likely proceed toward resistance at 146.50.
USDJPY: Bearish
The USD/JPY price action seems to have regained bullish momentum after it broke through the 131.87 support level. In subsequent trading sessions, price action has to retrace more steeply upwards through 131.87 as resistance. Now the pair’s price has even surpassed the 133.00 mark to reach the 133.55 price mark. Meanwhile, the Moving Average Convergence Divergence (MACD) curves are rising towards the 0.00 level. Additionally, the bars of the MACD indicator are growing taller above the equilibrium point. Furthermore, the RSI indicator lines have aborted a trend reversal move to continue rising upwards. Summing up all the signs here, we can assume that price action is still heading toward the 135.00 level.
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