The US dollar has gained momentum this week. Consequently, this seems to have burdened some of the major FX pairs as hopes of an upside correction off-eyed support were dashed. However, some of these pairs are also capitalizing on this, using it as a tailwind to propel their prices towards higher marks.
EURUSD: Bearish
The EURUSD has stayed bearish ever since it began trending downwards on July 14. The recent improved mood of the USD has caused the downward retracement to continue, as price action now eyes the 1.0700 mark. Price action in this market continues to occur below the 9- and 21-day Moving Average (MA) curves. Meanwhile, the Relative Strength Index (RSI) indicator lines maintain a downward path as they tread deeper into the oversold level. The last price candle here is now closing in on 1.0700. As a result, this major pair may trade between the 1.0600 and 1.0700 price levels before the weekend.
GBPUSD: Bearish
The GBPUSD has also been affected by the momentum gain in the USD. This can be seen as a headwind that defiled the price support level at 1.2500 in the previous trading session. Price action had earlier shown signs of attempting to break the downward trend that started on the 14th of July. However, bears have maintained dominance as price action continues on its downward path. Likewise, the RSI lines have continued more steeply towards the oversold region. As a result, this sets a strong bearish tone for price movements in this market as price action now heads towards the 1.2400 mark.
USDCHF: Bullish
Meanwhile, the USDCHF pair has continued to benefit from the tailwind created by the momentum gained in the US dollar. This major pair has continued with its moderate upside momentum that started around July 18th. Trading activities for this major pair have continued to occur above the SMA lines on this chart. Meanwhile, the RSI indicator lines are also in agreement that the moment is up, as their lines continue to rise towards the overbought region. The behavior of the RSI indicator lines seems hypersensitive, though it largely agrees with the fact that price action is heading toward the 0.9000 mark.
USDCAD: Bullish
The USDCAD price action recently breached the resistance price mark at the 1.3606 mark. However, the ongoing session seems likely to test the strength of buyers at this point. The price candle that represents the ongoing session reveals that price action has corrected minimally toward the support at the 1.3606 mark. However, the RSI lines still have an upside bearing, with trading activities occurring at a considerable distance above the SMA lines. Traders in this market can anticipate that the support at the 1.3606 mark may hold and that price action may extend the upside retracement towards the 1.3700 mark.
AUDUSD: Bearish
AUDUSD has earlier behaved as if it will sustain above the upside correction that started last week. However, dovish monetary policy surrounding the Australian dollar seems to have weakened it against the US dollar. Subsequently, this has caused this major FX pair to revisit support at the 0.6380 mark. Meanwhile, the Relative Strength Index (RSI) indicator maintains that bears are dominant at this point, and as such, it suggests that the pair will most likely break down this support to approach the 0.6300 mark.
EURJPY: Bearish
Price activity in the EURJPY market suggests that buyers are engaging sellers. As a result, the price action in this market has continued to trade in the price range of 157.50 and 159.00. Despite the appearance of a dashed-shaped green candle for the ongoing session, the RSI indicator curve stays convergent for a crossover. This shows that price action may test the support at 157.50 shortly. However, steeper falls may be seen if buyers aren’t able to defend this line. This may bring price action in this market to focus on the 156.00 mark.
USDJPY: Bullish
Price action in the USDJPY market has remained consistently bullish after price action bounced off the upside-sloping trendline on this market about five sessions ago. However, there has been very little action in today’s trading session. This is portrayed by the appearance of the last dashed-shaped, red price candle on this chart. Meanwhile, the RSI lines continue to ramp towards the overbought region. Consequently, this suggests that price action may still break through the resistance formed at the 148.00 mark.
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