Two impactful fundamentals were released yesterday, but they failed to significantly strengthen the USD. As a result, there weren’t any significant bullish moves in most of the major FX pairs, except for the AUDUSD, as its market saw a stronger price increase compared to previous trading sessions.
EURUSD: Bearish
The EURUSD has indicated that it will extend its medium-term downward retracement since the dollar continues to maintain a fair mood. The mood of the USD continues to keep the major FX pair under bearish pressure and has now brought it to trade below the 1.0700 mark.
The ongoing session seems to have significantly favored short traders, considering the size of the price candle that represents the session. Also, the Stochastic Relative Strength Index (RSI) indicator lines can be seen bent towards each other for a crossover below the 50 level of the indicator. Consequently, this shows that bears may keep pounding toward the 1.0600 mark.
GBPUSD: Bearish
The bears remain in control of the GBPUSD market. This has brought this FX pair to now trade at a four-month low, as the session now sits at support at 1.2448. Technical indicators further show that the pair is more likely to test support at the 1.2448 mark.
The RSI has completed a bullish move in the oversold region below the 30 mark. Meanwhile, trading activities on the pair market chart continue to happen below the 9- and 21-day Smooth Moving Average SMA curves. Therefore, traders can anticipate and probably join the downtrend towards the 1.2400 price level.
USDCHF: Bullish
In the case of the USDCHF, it could be seen that the pair is maintaining a steady upward retracement towards higher price levels.The rather constant momentum of the USD seems to be bringing this major FX pair to focus on the 0.9000 mark. The ongoing session has brought a minimal downward movement, but price action still remains above the SMA curves.
Meanwhile, an upside crossover is underway and nearly complete on the Relative Strength Index (RSI) indicator. Consequently, this implies that price action will continue toward the earlier-mentioned price mark at the 0.9000 threshold.
USDCAD: Bullish
USDCAD had earlier corrected steeply downward following a fakeout of the resistance at the 1.3640 price mark. However, the US fundamentals seem to have arrived just in time to rescue the pair from further depression.
Consequently, price action was able to correct the support at the 1.3510 mark. The ongoing session remains focused on the ongoing upside correction, while the RSI indicates that more upside momentum is about to be delivered to price action in this market. This will propel the price towards the 21-day SMA shortly at the 1.3570 price level, while higher ground may be reached before the weekend.
AUDUSD: Bearish
The momentum surrounding this major FX pair seems to have strengthened in today’s trading activities. Although previous trading sessions saw the pair correct off the baseline at the 0.6380 mark, record profits in those sessions weren’t as strong as the ones in the ongoing session. Consequently, this pair now trades above the 9- and 21-day SMA curves.
Although the behavior of the RSI seems favorable, it is necessary that traders pay attention to how sensitive it is. The line of this indicator has risen too far into the overbought region with such a moderate upside correction. Nevertheless, it looks more likely that price action will extend the ongoing correction towards the 0.6500 mark ahead of the weekend.
EURJPY: Bearish
The EURJPY pair is sticking to its recently found upside path after it corrected upwards off its recent fakeout below the 157.50 mark. The ongoing session has continued above the 9- and 21-day SMA curves. Which holds bullish implications for this pair.
Likewise, the RSI indicator maintains that the upside momentum is strong, considering the behavior of the indicator lines, as they ramp steeply upwards following a correction just below the 20 mark of the indicator. Gathering up all the perceived indications in this market, it is substantial enough to anticipate that the correction will extend toward the 159.00 price level.
USDJPY: Bullish
USDJPY seems to maintain a rather modest approach towards elevated price marks. This FX pair seems to be in a state of equilibrium even after the arrival of the two anticipated fundamentals this week. It seems that the BoJ’s monetary policy seems to have a counterbalancing effect on this pair. Traders have kept the previously gathered profits in this market, but the ongoing session seems to be encountering an upside rejection considering the appearance of the price candle that represents it.
Also, the RSI has delivered a crossover, which was supposed to result in a further upside price move. However, a dilation can be perceived on the crossed RSI, which indicates that bears and bulls are at odds at this mark. Nevertheless, the color of the price candle suggests that bulls are still leading and points to the possibility of price action rising toward the 148.00 mark.
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