The mood surrounding most of the major FX pairs has changed. While some have extended their upside or downward retracement, others, like the EURJPY, have spontaneously turned bearish since it trades in a choppy market.
EURUSD: Bearish
The EURJPY pair has failed to pull the brakes within the 1.0700 and 1.0600 regions as its price action has extended the downward trend that started on July 19. As a result, the pair price action has fallen through the support at the 1.0600 mark. Two trading sessions have occurred below the 1.0600 mark and keep reaching towards lower support. Yet it looks like the pair will still fall, considering the indications arising from technical indicators.
The lines of the Moving Average Convergence and Divergence indicator have continued a slightly downward path following a crossover below the equilibrium level. Likewise, the bars of the indicator have started appearing red below the 0.00 level. At this point, this FX pair may be heading towards the 1.0500 mark.
GBPUSD: Bearish
The current dollar strength and the quiet pound as per fundamentals have stayed strong enough to keep the GBPUSD pair on a downward path. The ongoing downtrend started on July 14th and has maintained a downward path since then until sometime last week, when the downtrend seemed to have renewed momentum as price action plunged more steeply downward, breaking out of the floor of the drawn price channel.
The pair seems set for more downward retracement, considering the MACD indicator, as its lines keep falling deeper into the sub-zero region. Likewise, the indicator also shows that downward momentum is strengthening, as the last two bars appear solid red. Meanwhile, the ongoing session presents a minor correction of the lowest limit of the Bollinger Band. Nevertheless, this pair is generally set to fall to lower support at 1.2100.
USDCHF: Bullish
The USDCHF has continued its bullish path, which started around July 20th. The pair has been able to cross the resistance mark at 0.9023 and, since then, seems to have increased in its upside momentum. At this point, the market is heading towards more elevated resistance at the 0.9200 mark. Meanwhile, technical indicators like the MACD maintain that the uptrend may even continue through the mentioned price resistance mark.
This opinion was drawn from MACD lines, as it keeps rising upwards above the equilibrium level, with the indicator bars all green, revealing that the upside momentum is strong. Also, trading activities continue to occur above the middle band of the Bollinger Bands while gently pushing against the upper limit of the indicator to avoid a resultant downward correction. Therefore, traders can still anticipate that this market will hit the 0.9250 mark.
USDCAD: Bullish
The USDCAD can still be considered bullish following the significant price surge that occurred in the previous session. This resulted in price action in this market popping through the resistance at the 1.3510 mark. Nevertheless, the ongoing session has brought some losses to this market, with the last price candle retreating towards the once-broken resistance.
Yet the market remains above the middle limit of the Bollinger Band, while the MACD continues to indicate decreasing momentum for downward forces. At this point, the MACD lines continue to approach a bullish crossover below the equilibrium level. Therefore, a continued upside correction can still be expected towards the 1.3600 mark.
AUDUSD: Bearish
AUDUSD keeps offering bear traders some profits after the market seems to have hit a brick wall just above the middle limit of the Bollinger Band during two trading sessions ago. Meanwhile, the ongoing session has brought the major FX pair closer to the respected support at 0.6380. However, it appears that the AUDUSD may break this support should downward forces renew their momentum, as hinted by the MACD indicator.
Here, it appears that a downward crossover has already been delivered by the MCAD curves. Also, by closely observing the indicator, it appears that a red bar can be spotted. Consequently, downward forces may have gathered the needed strength to tear down the support at the 0.6380 mark towards the 0.6350 mark at least.
EURJPY: Bearish
Earlier today, the EURJPY had surged through the 158.00 mark. However, this major FX pair has fallen back below the 157.50 mark, demonstrating how choppy the market is. Currently, the pair looks more bearish and may fall through the 158.00 mark. Nevertheless, the Bollinger Bands continue to narrow as volatility keeps shrinking.
Meanwhile, the Stochastic RSI has displayed a downward crossover. The display on the RSI points out that bears are at an advantage at the moment, and the pair may still push against the lower limit of the Bollinger Bands, thereby falling to lower supports at the 157.00 mark, should fundamentals concerning the pair stay constant.
USDJPY: Bullish
Over the medium term, the USDJPY has continued to perform well as its price action keeps trending upward. This major FX pair recently broke through the price resistance level at the 148.00 mark. USDJPY has even advanced through the 149.00 price level, while indications still support a continued upside retracement. Trading activities continue to happen above the Moving Average of the Bollinger Bands.
Meanwhile, the RSI lines seem to be peaking out at the 100 level of the indicator. The leading and lagging lines are closing in on each other in the overbought region, but they still have an upside bearing. Indications arising from this market support the idea that price action may approach the 150 level in this market.
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