As the US dollar continues to gain momentum, while some of the major FX pairs are feeling the heat as they take on a more bearish tone. This may continue in the meantime, as the fundamentals from the US seem stronger than any other fundamentals that have arrived as of the time of writing.
EURUSD: Bearish
The EURUSD continues to increase in bearish momentum after a brief moment of consolidation. As it could be perceived, the USD has created headwinds for this major FX pair. Also, the look of the last red price candle on the pair’s daily chart has brought prices to a support level of five trading sessions ago.
Additionally, price action in the market is yet to test the lowest band of the Bollinger Bands, while the Moving Average Convergence Divergence (MACD) indicator is hinting that bearish momentum in this market is increasing. This is revealed as the leading line of this indicator has just fallen below the equilibrium level.
At the same time, the bar of the MACD has regained its solid red appearance. Consequently, this strongly hints that price action may head towards the 1.0930 mark.
GBPUSD: Bearish
The GBPUSD pair has finally succumbed to the resistance it faced recently after refusing to enter the price region between 1.2702 and 1.2827. The aforementioned event took place about five sessions ago. However, now, market bulls seem to have yielded to bearish pressure, as price action for this major FX pair fell into the once avoided region of 1.2702 to 1.2827.
Furthermore, the MACD has shown that bears are strengthening. This could be seen as the last two histogram bars on this chart are now solid red, and the leading line of this indicator has also crossed below the equilibrium level. Consequently, this has brought prices to focus on a support level of 1.2697.
USDCHF: Bullish
The increase in USD bullish momentum has left a favorable mark on USDCHF, as the pair has been able to extend its upside retracement. Price action in this market earlier started a retracement from its lowly position near the 0.8650 mark.
At this point, it can be seen that the pair has made some impressive progress, as price action is now above the middle limit of the Bollinger Band. Additionally, the last price candlestick on this chart reveals that the upside momentum is increasing. Furthermore, the MACD indicator is also attesting to the above-drawn conclusion.
The lines of this indicator are now ramping in the upside direction, and its bars are all green, with the one for this session growing taller than the one for previous sessions. Trades can now anticipate the upside correction to continue toward the 0.8900 mark.
USDCAD: Bullish
The newly found upside momentum of the US dollar has also created a tailwind for the USDCAD pair. The just concluded session saw price action major FX pair rise past the middle band of the Bollinger Bands. Furthermore, the ongoing session has advanced the progress, placing prices just above the 61.80 Fibonacci Retracement level and further above the middle limit of the Bollinger Bands.
In addition, the MACD is showing that the upside momentum is gaining strength. This could be seen as the bar for the ongoing session appearing taller than the previous one. Additionally, we can see that the lines of this indicator are also dilating, indicating that momentum is increasing. Therefore, market participants can anticipate price action advancing towards 1.3400.
AUDUSD: Bearish
The dovish monetary policy from the Aussie side is allied with the USD momentum gain to create a stronger headwind for the major pair. Price action on the AUDUSD chart had earlier bounced off the lowest limit of the Bollinger Bands, but bears soon took control following the arrival of economic data.
The MACD is showing that more price action may fall lower in the coming sessions. Both lines of the MACD have crossed below the equilibrium level. In addition, its histogram bars are getting taller towards the negative axis. This shows that it is likely that price action will tear down the just-found support at the 0.6582 price mark to approach the 0.6500 mark.
EURJPY: Bullish
The EURJPY daily market’s price movement has significantly recovered from bearish impacts. The sentiment surrounding the EUR has improved over the last four trading sessions, and prices have now begun to climb upward. In addition, a green price candle has appeared above the upward-sloping trendline, suggesting that price action may have resumed an upward trajectory.
Furthermore, it can be noted that the Moving Average Convergence Divergence (MACD) indicator has produced an upward crossover above the equilibrium level. Above the equilibrium level, a green histogram bar has also appeared. This implies that price action might continue to move towards the 160 mark.
USDJPY: Bullish
The USDJPY pair has continued its upside retracement towards higher price marks after falling through multiple supports about two weeks ago. The major FX pair has retained its upside focus against the rule of the Bollinger Bands indicator. This is because price action had just tested the uppermost band of this indicator.
However, a minimal downward correction occurred via the last price candlestick, but the appearance of this price candle suggests that upside momentum is intact. Furthermore, the MACD indicator is revealing that the upside momentum in this market is strong and progressive. The leading line of this indicator is rising further above the equilibrium level as the bars are getting taller.
Therefore, traders can eye the 145.00 resistance as a short-term mark, as the retracement may extend toward the 146.00 mark.
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