Trading activities this week have been very intriguing. The changing fundamentals surrounding the US dollar have caused some unexpected changes in the market. While this has a negative effect on some pairs, some are still finding their way around it.
EURUSD: Bearish
Price action in the EURUSD market earlier this week gathered some profits after correcting upwards from near the 1.0800 mark. However, yesterday’s trading session incurred a significant downward correction, pulling prices below the 21-day Smooth Moving Average (SMA) line from above it. Nevertheless, the ongoing session seems to be making an effort to resume upside movement ahead of the weekend. This will place the EURUSD among pairs with prospects ahead of the weekend break.
This can be seen as an inverted hammer price candlestick appearing off the 9-day SMA line. Due to the fact that the upside impact is still quite small, the Stochastic Relative Strength Index (RSI) indicator lines still have a bearish tone following a crossover in the overbought region. Therefore, considering the position in which the last price appeared, traders can anticipate a rebound towards the 1.08800 mark.
GBPUSD: Bearish
GBPUSD price action on the daily market shows that trading activities continue to largely occur below the 1.2800 price level, while the pair seems to be acquiring lower lows. However, over the past trading sessions, the market recorded moderate profits on the upside. However, in the just concluded trading session, price action corrected downward, bringing it below the 1.2700 mark.
Nevertheless, today’s trading session set out to minimize the effect of this correction, as a green candle appeared just below the 21-day SMA line. Meanwhile, the RSI curves have also been kept on the upside path following the appearance of this price candle. As a result, this is pointing out that price action may approach 1.2750 ahead of the weekend.
USDCHF: Bullish
USDCHF is one of the major pairs, showing that its price action lacks volatility. Here, price movement remains above the 9- and 21-day SMA lines. This can be attributed to all the profits recorded over the past two trading sessions. Consequently, despite the minimal bearish correction the ongoing session has introduced, price action remains above the SMA lines.
Meanwhile, the RSI indicator can be seen retaining its upside path following a crossover. Consequently, this maintains that buyers are still favored in this market as the upside momentum looks healthy enough to keep price action going towards the 0.9000 mark.
USDCAD: Bearish
Earlier in the week, USDCAD price action had corrected off near the 1.3600 price mark. And given the circumstances surrounding it, it was believed that the market might present bear traders with considerable profit. However, it appears that the US dollar has regained some momentum, which resulted in an upside correction for this pair in the ongoing session.
This has laced the price of this pair back above the 21-day SMA line. Also, the RSI indicator has rather delivered a bullish crossover in the oversold region. This attests to the developing activities in the market. Nevertheless, it will only be safe to await additional supporting fundamentals to sufficiently hope that the correction will approach the 1.3650 mark at this point.
AUDUSD: Bullish
Price action in the AUDUSD had rebounded off the 0.6380 mark on the 20th of August. Since then, the price of this pair has been obtaining higher support levels. This has placed AUDUSD among those pairs that have made some profits in recent times. Very recently, price action crossed above the 9- and 21-day SMA lines but seemed to be facing a headwind shortly afterwards. The ongoing session seems to have seen an increase in the experienced downward correction, based on the look of the last price candle on this chart.
Despite this, traders may want to anticipate that price action may soon obtain support above the MA line, as it appears to be delivering another crossover. On the contrary, the RSI curves have also delivered a downward crossover in the overbought region. Therefore, traders are facing a dicey situation but may still hope for an upside correction to occur towards the 0.6550 mark.
EURJPY: Bearish
The battle continues for the EURJPY as it continues to struggle above the 1.57.50 mark. This pair has been trying for some time to break significantly into the price region between 159.90 and 161.00 but has subsequently failed. At this point, EURJPY may face a steeper fall below the 157.90 support.
This is coming from the inference drawn from the appearance of the last price candle and the fact that it has plunged prices below the 9- and 21-day SMA lines. Simultaneously, the RSI indicator is about to also deliver a bearish crossover just below the 60 mark of the indicator. Therefore, market participants may anticipate a downward correction towards 156.00 in the meantime.
USDJPY: Bearish
USDJPY price action has started retracing lower support levels since the 29th of August. Although this price movement lacks significant momentum, it seems to have fallen below the psychological support created by the 9- and 21-day SMA curves. As a result, this may push more traders to go short on the pair.
While this seems all too soon, the RSI indicator lines have fallen deep into the oversold region. Meanwhile, bears are still leading in the ongoing session considering the appearance of the last price candle on this daily. Therefore, traders can anticipate a steeper downward retracement towards the 144.00 mark.
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