US Dollar Index Reverses Friday's Gains, Dips Below 106.00

Weekly Analysis of Major FX Pairs (October 18th–25th, 2023)

Major global events have impacted the US dollar, causing headwinds in some major FX pairs. However, others have capitalized on this, continuing to generate profits as they maintain their upward correction.

Weekly Analysis of Major FX Pairs (October 18th–25th, 2023)

EURUSD: Bullish

After a reversal in the EURUSD market that brought it below the 1.0600 threshold, a sharp downward correction followed. Yet, price action rebounded moderately from a higher low around the 1.0500 mark, bringing it closer to 1.0600.

The current trading session has begun above the 21-day Moving Average line. With the recent crossover on the Relative Strength Index (RSI) indicator, bullish momentum appears moderately extended, increasing the likelihood of the major FX pair breaking the 1.0600 level before the weekend.

Weekly Analysis of Major FX Pairs (October 18th–25th, 2023)

GBPUSD: Bearish

The GBPUSD market hasn’t significantly benefited from the current state of the US dollar. This major pair has found higher support above the 1.2100 price level. Headwinds seem to have emerged after price action broke through the resistance formed by the 21-day MA line.

Today’s session showed minimal gains but ended close to the previous session. This suggests a balancing effect between pound and dollar momentum. A bearish RSI crossover indicates a downward trajectory, yet the gains hint at buyers preparing to target the 1.2200 mark.

Weekly Analysis of Major FX Pairs (October 18th–25th, 2023)

USDCHF: Bearish

The USDCHF pair has been moderately descending since its uptrend ended near the 38.20 Fibonacci Retracement level. Price action has breached the support at the 0.9023 mark, pushing the pair below the Moving Average curve.

The RSI indicator has fallen deeper into the oversold zone. Given this breach, it appears the major pair may approach the lower support around the 0.8900 level. However, if the US dollar regains momentum, the trend may reverse.

Weekly Analysis of Major FX Pairs (October 18th–25th, 2023)

USDCAD: Bearish

The USDCAD pair has been testing the support level at the 1.3600 price mark for a few sessions. Price action has been rebounding from lower resistance, previously surpassing the 1.3650 mark. However, today’s trading began with moderate losses. Despite being above the 1.3600 support, price action is hovering around the Moving Average line.

This suggests that this major pair is  attempting to find higher support. In contrast, RSI curves are moving deeper into the oversold region, indicating a likelihood of bearish traders approaching the 1.3600 support.

AUDUSD: Bullish

AUDUSD has rebounded upwards after the 0.6300 support level failed, bringing the pair toward the 0.62800 mark. Price action has rebounded from this support and broke through the 0.6380 resistance. The ongoing session has found support at the Moving Average line.

The rising RSI curve signals strong bullish momentum. The Australian dollar appears stronger compared to the weaker US dollar. This has created an upward trend with the potential to breach the 0.6400 resistance. Before extending this trend, price action may approach the 0.645 mark.

EURJPY: Bullish

The EURJPY market displays signs of stability as the current session approaches higher price levels. Price action has established a strong foundation at the 21-day MA line, with the latest price candle positioned above the MA line, driving the pair’s price upward.

Furthermore, the RSI indicator lines are sharply ascending, having recently experienced a bullish crossover near the 30 mark on the indicator. These factors suggest a growing likelihood that the EURJPY could generate increased profits as it approaches the 160 mark.

USDJPY: Bearish

The USDJPY has been on an extended bullish trend when viewed from a broader perspective. Recently, price action in this market has fluctuated between the 148.00 and 150.00 levels. Despite the fact that even in recent times, the price has remained consistently above the drawn MA line, the 150.00 level has proven to be a robust resistance point.

This is evident from the current session’s rebound from the 150.00 resistance. However, the pair’s price still remains above the Moving Average (MA) line, and the Relative Strength Index (RSI) is continuing to rise. Consequently, these signals suggest that price action may soon break through the 150.00 level to reach the 151.00 mark.

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