In this week’s analysis of major currency pairs, there have been some interesting price moves. Some pairs have continued on their bearish path, while others have switched from bearish to bullish or the other way around. Let’s take a closer look at some of these markets.
EURUSD: Bullish
Ever since around the middle of May, EURUSD price action seems to have started moving in an upside direction but in an undulative manner. At this point, price action seems to be on the upward part of its undulating movement, as was the case last time. Price candle here bounced off the floor of the upside price channel on this chart. However, it appears that the effects of buyers aren’t as felt as those of sellers. This is because the Stochastic Relative Strength index (RSI) indicator is yet to reflect the appearance of the last price candle here. The line of this indicator can be seen still generally moving in the direction of the oversold. However, traders are more likely to keep going long at this point. Price activity in this market may continue towards the 1.1100 mark.
GBPUSD: Bullish
GBPUSD has recently broken through the 1.2500 price level. But price action lacked enough momentum to significantly surpass this level, which caused a downward retracement afterward. At this point, it appears that market bears are rising to the occasion, as a green price candle has just appeared on the daily chart. Meanwhile, the RSI indicator too has just performed an upside crossover, while the Moving Average Convergence Divergence (MACD) indicator is pointing out that downward forces are losing their hold. This can be seen by the fact that the bars of the MACD have become pale red in appearance. Consequently, it appears that price action will resume its upside retracement towards the 1.2550 price mark.
USDCHF: Bullish
The USD/CHF pair is one of the pairs that has turned from a bearish path to a relatively bullish path. In recent times, price action in this market has torn through the support level at the 0.9080 price level. However, now, price action seems to have bounced off the lowest limit of the Bollinger Bands indicator. Although the move seems shaky, trading indicators seem to suggest that it may still advance a bit further upwards. The Stochastic RSI indicator lines are rising undisturbed towards the overbought zone, while the MACD indicator is about to give an upside crossover. Therefore, this suggests that price action may be aiming for the 0.9044 price level. And, if this level gets taken, prices may rise towards the 0.9100 mark.
USDCAD: Bearish
In the USDCAD market, price action seems to have changed from bullish to bearish. Very recently, an upside retracement occurred in this market, and price action poked through resistance at the 1.3417 price mark. Afterward, retracement traders soon commence going short, and this drives the price back towards support. Meanwhile, indicators are suggesting that prices may proceed steadily downward from here on out. The RSI has just performed a bearish crossover, and the MACD lines are now trending slightly below the equilibrium level. Consequently, this suggests that price action may trickle toward the 1.3045 price mark.
AUDUSD: Bullish
In previous trading sessions, AUDUSD has consolidated around the middle band of the Bollinger Bands indicator in an almost straight line. Nevertheless, in the ongoing session, buyers seem to have made more impact as a much larger green price candle appeared on this market. Consequently, this has placed price action above the middle limit of the Bollinger Bands indicator. And by implication, this is revealing that more buyers may start going long, as price action may retrace higher from here. Also, the RSI indicator has displayed a bullish crossover. Additionally, the MACD curves have risen above the 0.00 mark, though with a very small margin and little distance between the two lines. At this point, price action seems to be on its way toward the 0.6782 price mark.
EURJPY: Bearish
The EURJPY’s price action has turned bearish after it broke the resistance at the 146.00 price mark. As soon as price action hit the 147.50 mark, short orders seemed to get triggered, and prices started a downward retracement. Additionally, the Stochastic Relative Strength index (RSI) indicator lines have started trending downward and are now at the 84 and 73 levels. Also, the MACD indicator lines have started showing that upside forces are getting exhausted, though still above the equilibrium level. Therefore, we can predict that price activities in this market may extend the downward retracement toward the 146.00 price mark.
USDJPY: Bullish
Price activity in the USDJPY in recent times has remained above the MA of this Bollinger Bands indicator. Price action here hit the highest limit of the Bollinger Bands in the previous trading session. However, it failed to extend the aggression, and an equal downward retracement occurred in this session. Trading indicators on this chart were quick to reflect the downward retracement. In the overbought region, the RSI leading curve can be seen bending towards the lagging one. Also, the MACD indicator bar is now pale green and shorter. Nevertheless, price action still possesses a bullish tone, and the price may rise toward the 135 mark.
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