The mood of the US dollar recently improved, and it created a strong headwind in most major FX pairs. However, very recently, the perceived improvement in fundamentals concerning the USD seems to have slowed down. This appears to have revived the bears and set a new course. More interesting developments are still on the way, as today is the decision day of the Federal Reserve.
EURUSD: Bullish
The EURUSD pair seems to be currently fighting a headwind. Price action in the market of this major pair started facing strong resistance in its upside course after poking through the 1.1200 resistance. Subsequently, downward forces caused price action in this market to start consolidating, before a downward retracement.
Currently, trading activities in this market are occurring below the middle band of the applied Bollinger Bands indicator. Additionally, the MACD continues to indicate that the downward retracement is strong and the downtrend may continue despite the appearance of the last price candle. As all indications in this market are bearish, traders can brace for impact at the 1.0922 price level.
GBPUSD: Bullish
GBPUSD bounced off the 1.2702-1.2827 price region. Given the circumstances surrounding the market about two sessions ago, it appears that price action may trade in this region before any possible upside correction. However, the USD may have gone softer while the mood around the pound improved.
This seems to have created some thrust, which caused the price action of this major pair to correct off the price level of 1.2827. Also, the Moving Average Convergence Divergence (MACD) indicator is showing that downward forces are subsiding. Likewise, the Relative Strength Index (RSI) indicator lines are also rising from the oversold region. Despite this, traders may want to wait on the sidelines for some important data to roll out before placing their trades, targeting higher price marks near 1.3200.
USDCHF: Bearish
The USDCHF pair had previously crashed through multiple support levels. However, when price action punched through the support at 0.8600, it rebounded moderately upward. Nevertheless, price movements have started facing another price ceiling at the middle limit of the Bollinger Bands. As of now, price action of this major pair is correcting off the above-mentioned resistance.
Also, the Relative Strength Index (RSI) indicator is telling us that this market bearish. This inference is drawn from the line of the RSI, as it is now trending downwards towards the 80 mark of the indicator. Traders can expect the correction to extend toward the 0.8600 mark.
USDCAD: Bullish
The USDCAD continues to maintain trading above the gained support at the 1.3134 price level. This can be seen as price action rebounding towards the middle limit of the Bollinger Bands from the mentioned price mark. The ongoing session seems to have sent the price of this major pair piping through the middle limit of the Bollinger band.
Likewise, the RSI indicator curves are now about to deliver an upside crossover above the 60 mark of the indicator. This is indicating that this pair may gain more upside traction ahead of the arrival of the Fed’s important data. Therefore, traders can, in the meantime, expect a retracement of the 1.3230 price mark.
AUDUSD: Bullish
AUDUSD action generally seems to be maintaining its slight upside retracement, which seems to have started around June 1st. Price action about five trading sessions ago seems to have corrected off the drawn upside-sloping trendline, which generally reveals the general trend in this market.
Although the ongoing trading session has presented some considerable downward price corrections, price action in this market remains above the middle limit of the applied Bollinger Bands. Also, the RSI lines are still pointing upward despite the losses incurred in the ongoing trading session. Therefore, traders can expect more upside retracement towards the 0.6800 level ahead of market-influencing fundamentals that may emerge today.
EURJPY: Bearish
After the EURJPY’s price movement neared the 158.00 resistance level, bear traders took control of the currency pair. The bull’s high surge seems to have required all of its might. Price action has therefore been corrected towards lower piece marks since two trading sessions ago. The Relative Strength Index (RSI) indicator’s readings appear to indicate that the upward trend may have peaked.
The RSI curves, which are currently heading sharply lower, show this. The most recent price candle has now crossed the upward-sloping trendline. Consequently, traders can still stay solid in anticipation of prices in this market falling to 155.00.
USDJPY: Bearish
Not long after price action in the USDJPY market found its way through the price ceiling at the middle band of the Bollinger Bands indicator, downward forces started forcing price action back towards the middle band of the Bollinger Bands indicator. However, the appearance of the last dashed-shaped price candle seems to be suggesting that upside forces are presenting some form of resistance. One interesting thing about this is that the resistance was staged above the middle limit of the Bollinger Bands.
This suggests that the staged resistance by buyers in the market of this major pair resistance to downward forces has a considerable chance of success. However, the RSI and MACD indicators are still pointing out that upside momentum is still weak. But, considering the possibilities that today’s Fed meeting may bring, traders can anticipate that price action may rebound off the 140.00 mark.
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