The improving mood of the US dollar has given major forex pairs a clear direction. As of now, trading action is at its peak. Traders are to stay tuned for economic happenings that may offer a different tone to each of the major pairs.
EURUSD: Bearish
EURUSD has taken a more bearish tone after breaking into the 1.1000 price level. The pair have succumbed to headwinds over a longer period of time. Not long ago, there was a downward retracement through the 1.08000 support level. At this point, the last price candle has punched through the support level at the 1.07056 mark. In addition, the Bollinger Bands indicator has been shaped to indicate a downtrend. Considering the activities on the Relative Strength Index (RSI), price action may gather more bullish impetus. The lines of the RSI had already landed in the oversold region and had earlier moved upwards to indicate a gain in bullish momentum. However, following the appearance of the last bearish price candle, it appears that a bearish crossover is on the way. Consequently, this signals that the price may decline toward the 1.0500 mark.
GBPUSD: Bullish
Price action in the GBPUSD market has crossed into the bear region on the Fibonacci Retracement tool. Nevertheless, price action at this mark has managed to remain mostly between the 1.2600 mark (resistance) and the 1.2271 mark (support) since early April until now. However, indications from indicators suggest that a retracement towards the 1.2600 mark may occur soon. In the previous trading session, price action had tested the middle limit of the Bollinger Bands but bounced off it through the 1.2400 support in the ongoing trading session. Nevertheless, the activities of the RSI curves are hinting that price action will retrace upwards as bullish momentum builds up. The lines of this indicator can be seen ramping towards the overbought region. This suggests that price action will revisit the 1.2413 price level.
USDCHF: Bullish
The USDCHF pair has managed to sustain its bullish stand since May 11th until now. In addition, this bullish stand seems to be getting stronger at the moment. This can be seen as price action having just reclaimed a previously lost support level at 0.9080. As of the time of writing, the USDCHF pair is now trading at 0.9106. Furthermore, there are indications that price action may rise further above this broken resistance. The RSI indicator has just performed an upside crossover in the overbought region. Even the appearance of the Bollinger Bands seems to suggest that more upside momentum is possible in this market. Traders in this market can anticipate a retracement towards the 0.9200 mark.
USDCAD: Bullish
The USDCAD market has picked up a bullish tone since the 7th of May, when price action bounced off the lowest limit of the Bollinger Bands indicator. Since then, price action has broken through multiple resistance levels. Currently, tailwinds are causing the upside retracement in this market to get stronger. Indications from this market suggest that price action is yet to break another resistance level. The Relative Strength Index (RSI) has performed another bullish crossover near the 50 level of the indicator. By implication, this suggests that the market is prepared to break the 1.3665 resistance level, as price movements seem bound to pick up more upside momentum.
AUDUSD: Bearish
The AUDUSD looks set to advance in its bearish path as price action continues to retrace lower and lower. Considering the behavior of all the major pairs, it appears that the strengthening of the USD may be a major factor acting against the AUDUSD pair. Over the past five trading sessions, price action in this market has retraced toward the 0.6554 mark. However, subsequent trading sessions seem to have witnessed headwinds from the dollar front, and this has caused a much stronger downward retracement. To strengthen the bearish tone in this market, the Moving Average Convergence Divergence (MACD) indicator curve has taken on a more bearish stance as its histogram bar has returned to a solid red color. This suggests that a retracement of the support at the 0.6480 price level is possible.
EURJPY: Bearish
The EURJPY daily market had retraced near the 151.00 price mark; such a price move appears to have awakened the bear traders. Consequently, this resulted in a downward retracement of the price in this market. The Relative Strength Index (RSI) indicator has displayed a bearish crossover, which indicates a reduction in bullish momentum. The lines of this indicator can be seen trending more steeply downward at this point. As such, this suggests that price action has taken a downward path. Also, considering the size of the last price candlestick here, it looks like price action has significant volatility, and the downward retracement may proceed rapidly toward the 148.101 level.
USDJPY: Bearish
USDJPY had earlier performed impressively, reaching its 140.00 mark over the past trading sessions. Nevertheless, it appears that the pair is now facing exhaustion at a high altitude above the 140.00 price mark. And, in the past three trading sessions, bear traders have been in control of price movements in this market. The RSI curves are now trending more steeply downward. Meanwhile, the MACD indicator curves are now ready for a bearish crossover above the equilibrium point. But interestingly, the last price candle here is hinting that the downward retracement may be experiencing some form of resistance. Considering the orientation of the Bollinger Bands, one can speculate that the retracement may not progress through the 139.09 mark.
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