In this week’s major FX pair analysis, it could be observed that the US dollar has found some strength lately. Consequently, this has helped most of the major pairs start recording some upside gains. Let’s then analyze each of these pairs separately.
EURUSD: Bullish
The EURUSD seems to have started the week with some considerable upside gains. However, yesterday’s trading session sucked out all of the previously recorded profits for this major pair, from two sessions ago. Nevertheless, today’s trading activities have started with bulls drawing the first blood while aiming for a price upside correction toward the 9-day Smooth Moving Average (SMA) line. Simultaneously, the Relative Strength Index (RSI) lines continue to ramp upwards toward the overbought region. Consequently, this suggests that price action may retrace above the resistance formed by the 9-day SMA line. If bulls are able to achieve this, more upside profit may then be gathered towards 1.09282.
GBPUSD: Bullish
Bulls continue to retain control of price action in the GBPUSD market, presenting bullish traders with moderate profits. The price action of this major pair has been trading within the 1.2700 and 1.2827 price ranges. But there was a minimal downside correction towards the crossed 9- and 21-day SMA lines. However, bulls seem to have returned to the market, as today’s trading session has started in their favor. Meanwhile, the lines of the Stochastic RSI indicator have delivered a downside crossover in the overbought region. Nevertheless, the appearance of a dashed-shaped price candle above the SMA lines seems to strengthen upside hopes that prices may extend retracements in the upside direction towards the 1.2800 mark.
USDCHF: Bullish
The USDCHF pair continues to strain to remain above the support created by the 21-day SMA curve. But it could be seen that price action is managing to remain on an upside path, which started around the 20th of July. Nevertheless, it could be seen that the MACD curves are still above the equilibrium level. But these lines can be seen converging above the equilibrium level. In addition, the bars of the applied MACD indicator continue to vanish into the equilibrium level. Meanwhile, the last two price candles on this chart are green and have appeared above the SMA line. Consequently, this has upside implications for this major pair.
USDCAD: Bullish
The USDCAD has stayed consistently bullish for a significant length of time. However, at this point, trading indicators are hinting that the uptrend may be preparing to terminate. Trading activities for this major pair continue to occur above the 9- and 21-day SMA curves. But the size of the last price candle here shows that bullish participants may be thinning. At the same time, the Moving Average Convergence Divergence lines can be seen drawing closer to each other, which also shows that buyers may be losing momentum. Therefore, it appears that price action may terminate its upside retracement around the 1.3600 resistance price mark.
AUDUSD: Bullish
The AUDUSD pair has been on an extended downward retracement. This saw the price action of this major pair crash through multiple support levels. At this point, the price action of this major pair seems to have bounced off support at the 0.6380 price mark. In addition, the last price candlestick also found support above the 9-day SMA curve. Simultaneously, the MACD indicator has just delivered a bullish crossover below the equilibrium level. The appearance of the last price candle atop the 9-day SMA line aligns with the upside impetus delivered by the MACD. This suggests that more upside retracements are on the way. The price action may extend the correction toward the 0.6500 mark.
EURJPY: Bullish
EURJPY had earlier found support above the 9-day SMA line. However, the mentioned support level has been broken down to retrace the 21-day SMA line. Furthermore, a dashed-shaped price candle has appeared below the 9- and 21-day SMA curves for the current session. By implication, this suggests that the pair may now fall lower. The MACD lines have also commenced trending towards the equilibrium point from above it. In addition, the bar of the MACD has started showing that downward momentum is getting stronger. This can be observed as they are now solid red and are growing taller below the equilibrium level. As a result, traders can prepare for price action to test the 155.00 price level.
USDJPY: Bullish
After price action in the USDJPY market has returned to its upside path since it bounced off the 138.00 price level on the 14th of July. Additionally, the price action of this major pair seems to have increased its upside momentum after it bounced off the upside-sloping trendline. The previous trading session saw prices rise above the 9- and 21-day SMA curves. Also, the leading and lagging lines of the MACD indicator are above equilibrium at 1.069 and 1.022 (leading and lagging lines, respectively). The gap between the two curves mentioned is quite small. Consequently, this indicates that volatility is low. Although price action may continue on its upward path, we may not experience a big swing in the meantime. Therefore, traders can still expect the retracement to extend toward the 157.50 mark.
Leave a Reply