BydollarAs of today’s trading session, the mood of the US dollar seems to have improved. Consequently, this has introduced some unexpected movements in the major FX pairs. Swing traders must therefore take advantage of this mood while it lasts.
EURUSD: Bearish
The long downtrend that started in the EURUSD market on July 18th has continued till now. In about eight trading sessions ago, price action dipped into the price range of 1.0700 and 1.0600 marks. During Monday’s trading session, and respected the resistance at the 1.0700 resistance as it bounced back towards the 1.0600 resistance. However, today’s trading has seen the pair bounce off the support at the lowest band of the Bollinger Bands indicator.
The ongoing session has brought the price of this FX pair towards the 1.0700 mark. Meanwhile, the Relative Strength Index (RSI) indicator curves are now trending towards the 50 mark, following a downward crossover. Given the behavior of price action in the ongoing session, traders may anticipate an upside correction towards 1.0700 at the very least.
GBPUSD: Bearish
GBPUSD remains strongly bearish; in fact, it appears that it has gathered more bearish momentum as its price action has fallen below the floor of the downward-sloping price channel that was drawn on July 14. Additionally, the RSI indicator keeps pointing out that bearish momentum is still in charge of price movements.
Also, the ongoing session is occurring near the lowest band of the Bollinger Bands indicator. Meanwhile, the RSI lines also have a downward bearing, which indicates that price movements may fall to a lower base, perhaps around 1.2250.
USDCHF: Bullish
Today’s trading session in the USDCHF has continued towards the upside. Since July 20th, this market has been on a moderate uptrend as it’s price action keeps rising steadily. However, the strength gains of the USD have further propelled the pair more strongly than in previous seasons.
Consequently, this major FX pair has just punched through a roughly 3-month-old resistance. While the pair now trades above the 0.9023 mark, the RSI continues to indicate that more bullish momentum may set in as trading continues. Therefore, it is likely that the pair will also punch through the 0.9100 mark before the weekend.
USDCAD: Bullish
Just like other FX pairs with the US dollar as a base currency, the USDCAD has also benefited strongly from the momentum gain in the American dollar. USDCAD bounced off support when it appeared that its price action may reach the 1.3300 support level. The ongoing session has seen the pair rise more strongly off the lowest band of the Bollinger Bands.
Although the pair still remains below the middle limit of the Bollinger Bands, the ongoing session shows that the pair has the potential to break the resistance at 1.3510 ahead of the weekend.
Also, the Relative Strength Index (RSI) indicator lines can be seen to possess an upside bearing after they have delivered a crossover. At this point, it appears that price action in this market may still surpass the 1.3550 mark before the weekend.
AUDUSD: Bearish
The behavior of price action in the AUDUSD market shows that this market continues to respect the resistance level of 0.6489. This is due to the fact that price action has once again corrected off that resistance price mark. Additionally, today’s trading session has brought a stronger downward retracement, which has brought this FX pair below the middle limit of the Bollinger Bands.
Likewise, the RSI is also attesting to the fact that bears are of considerable strength, as the indicator line falls more strongly after it delivers a crossover near the 100 level of the indicator. This suggests that the pair may extend the downward correction towards the support at the 0.6380 mark.
EURJPY: Bearish
The EURJPY market has continued its minimal bearish path after testing the middle limit of the Bollinger Bands as a resistance on Monday. Although this downward correction seems very minimal at first, it could be seen that the EUR seems to have grown weaker against the Japanese yen today as the last price candle in this market has just broken the support at the 157.50 mark.
Furthermore, it appears that the pair may slump lower before the weekend, as the RSI has just delivered a bearish crossover at this point. As a result, traders who swing trade can still prepare to see the pair extend correction towards the 157.00 price mark.
USDJPY: Bullish
The US dollar appears as the most favored currency as the week’s trading activities draw closer to an end. Although the market has been on an overall uptrend, looking at it from a broader perspective, the bettering mood of the USD has assisted the USDJPY pair to resume trading above the 148.00 price level.
Simultaneously, RSI lines continue to rise strongly upwards, below the 70 mark of the indicator. By implication, this suggests that the upside correction may extend toward the 150.00 price mark as the trading activities for the week continue to unfold.
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