The mood concerning most of this week’s major forex pairs has slowed down as the market anticipates a key fundamental (Powell’s Speech). Through this analysis, we shall try to gain insight into what may likely happen to each of these pairs as soon as the expected fundamental emerges.
EURUSD: Bullish
The EURUSD is the major pair that will be directly impacted by the above-mentioned fundamentals. This pair had recently ramped towards the price mark of 1.1000 about 11 trading sessions ago. However, the upside retracement seems to have met a barricade around the 1.09500 price mark.
Consequently, this caused the price movement to slow down, as it corrected minimally off the price resistance. As of now, traders have only been able to record minimal profits ahead of the expected fundamentals. Traders should note that price action remains above the 9- and 21-day Moving Average curves.
The lines of the Relative Strength Index (RSI) indicator are also trending slowly downward towards the 80 level. Therefore, Price activity may find support at the 9-day MA line ahead of the coming news, and may refocus on the 1.1000 price mark should a favorable fundamental emerge.
GBPUSD: Bearish
Not long after, this major pair price action popped through the 1.2800 resistance level. Short traders were attracted, and price action retreated to the 1.2765 price mark. Price activity in the GBPUSD market appears to have perched on the 9-day MA curve in an attempt to slow down the downward retracement.
Meanwhile, concerning the recent losses, the RSI curves are also falling back to the 50 mark of the indicator. Consequently, this attests to the waning bullish momentum in this market. Nevertheless, it appears that prices may hang around the 1.2760 price mark ahead of the fundamental.
USDCHF: Bullish
The major pair USDCHF has continued to extend moderate profits towards the 0.9000 price mark since about three sessions ago. The ongoing session has continued to present some minimal gains, as price action rose above the 9-day MA curve.
At this point, it is more likely that price action will gain more upward traction. Also, the RSI indicator lines can be seen rising upward and towards the 40 mark of the indicator. This is happening after the bullish crossover in this Indicator six trading sessions ago.
The above-mentioned signs have given a bullish tone to this market. However, the noticed bullish tone may grow stronger should the expected Fed talks arrive favorable, causing the upside retracement to extend toward the 0.9100 mark.
USDCAD: Bearish
USDCAD price action recently bounced off support at the 78.6 Fibonacci Retracement level and since then has maintained consistent gains towards the 9-day MA line.
However, the ongoing session has introduced some setbacks to the hopes of this major pair surpassing the 9-day Moving Average line shortly. Nevertheless, owing to the previous gains, which appear more significant, the RSI indicator is revealing that upside momentum is still generally on at this point.
Also, the coming Fed fundamentals will be key in dictating further market directions for this pair. Nevertheless, traders can anticipate prices increasing to 1.3260.
AUDUSD: Bullish
As soon as prices in the AUDUSD market tested the 0.6900 price level, sellers used the opportunity to take profit. The intensity of the downward retracement was low at the initial stage but was much stronger in the previous session.
However, the last green price candle on this market seems to be revealing that the tailwind is already preparing to break the downward retracements in this market. Nevertheless, this attempt looks weak at this point as the lines of the RSI continue to plunge toward the oversold region.
As a result, it should be noted that the Fed talks will guide further market direction once they arrive. Traders can expect a continued downward retracement towards the 0.6750 mark.
EURJPY: Bullish
Recently, the EURJPY pair price action pumped from around the 148.00 price mark through the 154.00 resistance price mark. Nevertheless, the upside retracement soon met a stop at the 155.50 resistance price level, and the price corrected downwards in the just concluded trading session.
The ongoing session seems to be showing that price action may challenge the price resistance at the 155.50 mark. But considering the size of the price candle, it may be too early to conclude that an upside retracement may occur from this.
The RSI curves can still be seen trending downward towards the 70 mark. Since price action is still above the 70 mark of the RSI, and the 9- and 21-day MA curves, traders can expect that price movement to challenge the 155.50 price mark at this point.
USDJPY: Bullish
The price action in the USDJPY pair continues to largely maintain the upside-sloping price channel on the daily market, which started around March 24th. The general price move since then has seen the price movements in this market break multiple resistances.
At this point, price action has bounced off a strong price resistance level at the 142.00 mark. However, a small-bodied green price candle has appeared for the ongoing trading session. This has placed the price a bit higher above the 9-and 21-day MA lines. However, the RSI curve continues to trend downward but remains above the 50 level of the indicator.
But, for the most part, we can expect that price action to continue rising toward the 142.00 mark. Price action may even retrace significantly above this level should the Federal Reserve’s talks emerge favorable.
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