Some of the major pairs in this week’s FX analysis seem to be attempting to reverse their market directions. Some have been successful at that, while others are still fighting for a change in their market position.
EURUSD: Bullish
The EUR/USD pair has shown some signs of life in recent trading sessions as price action approached the 9-day Moving Average curve from below it. However, over the past three trading sessions on the daily chart, there was a downward retracement toward the 23.60 Fibonacci Retracement level. Nevertheless, today’s trading session has offered some more resistance to short traders, as a green price candle appeared on this daily chart. The Relative Strength Index indicator has also started an upward course to indicate an increase in upside momentum. However, traders should monitor economic data coming from the eurozone for more impetus for a retracement towards 1.0850.
GBPUSD: Bearish
Buyers in the GBPUSD market seem to lose control of price action when the market hits resistance near the 1.2620 mark. Ever since then, price action has remained mostly within the 9-day MA line. However, as of now, price activity in the GBPUSD market seems to have passed a downtrend. This can be seen as price action having torn through the 23.60 Fibonacci Retracement level. Also, it should be noted that for about three sessions, price action has been bearish. As a result, the lines of the RSI have indicated a downturn in bullish momentum through a bearish crossover in the oversold zone. Therefore, short-term traders can anticipate a retracement of the 1.2417 price level.
USDCHF: Bearish
In previous trading sessions in the USDCHF daily market. During April, and precisely on the 10th of April, price action broke through the support at 0.9037. And ever since then, price action has stayed below the broken support. However, in recent sessions, tailwind attempted to push prices past 0.9037, but it failed. In the current session, it appears that another attempt has been staged, as a green price candle is now testing the resistance price mark at 0.9037. Additionally, the RSI is now indicating a gain in upside momentum. It is key to notice that price action is now above the MA line, and this suggests that price action may approach the resistance at the 0.9080 mark.
USDCAD: Bullish
The USDCAD pair seems to be attempting to continue its upward trajectory after surpassing resistance at the 50 Fibonacci Retracement level. Since May 11, price action has stayed mostly above this support. Nevertheless, at this point, the last price candlestick here seems to portray that price action is ready to advance upwards. The last price candle here is a green one and has pushed the price closer to the 1.3555 price mark. Meanwhile, a bullish crossover can be seen on the RSI indicator in the overbought region. These lines are now at the 89 and 83 marks and seem to suggest that price action may retrace the resistance at the 1.3555 price level.
AUDUSD: Bullish
The AUDUSD pair has been oscillating sideways between the 0.6797 price level and the 0.6588 price mark. But since the 12th of June, price action has been bearish, staying below the 9-day Moving Average curve. However, in the ongoing session, price action has fallen below the support level of 0.6588. At this point, price action appears to have crossed into bear territory. In addition, the RSI indicator has been shaped to align with the opinion that price action may extend movement toward lower support levels. Unless some favorable report comes out of the US, prices may retrace to 0.6500.
EURJPY: Bearish
The EURJPY pair seems to retain hopes of a further downward retracement, as the last price candle has placed the pair’s price just below the 9-day Moving Average curve. In recent times, there have been some large upside price fluctuations, which saw prices move past the 151.00 price mark. Such wide swings seem to have attracted headwinds. However, at this point, price action in this market hangs by a thin line above the 149.00 mark. Nevertheless, traders can anticipate a price fall toward the 148.00 price mark. This is because the Moving Average Convergence Divergence indicator lines are now attempting a bearish crossover. An eventual crossover over here will signal that price action is on its way toward the 148.00 mark.
USDJPY: Bullish
USDJPY seems to be maintaining its bullish stand, which started around the 15th of this month. Price action in this market has continued to move closer to the 139.00 price mark. Also, the last price candle here is still green in appearance and stands above the 9-day MA curve. Also, the MACD indicator lines are still trending upward. However, the bars of the MACD are now pale green and indicate weaknesses in the current trend. Consequently, traders should factor in the weakness in this trend as they anticipate an upside retracement of the price level of 139.02.
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