The major FX pairs have been influenced by the fluctuating sentiment surrounding the US dollar, resulting in a consolidation of price movements within a wide range. Let’s delve into the analysis of each of these markets.
EURUSD: Bullish
In the EURUSD market, the previous session saw a sharp downward correction that brought prices closer to a key support level around the middle limit of the Bollinger Bands indicator. This correction occurred when the price action of this major FX pair tested the upper Bollinger Bands’ resistance, signaling its strength. The current session has seen a minor recovery above the middle band of the Bollinger Bands.
The Relative Strength Index (RSI) indicator shows a downward trend from the oversold region, suggesting that significant upside momentum is required to retest the 1.0659 resistance level.
GBPUSD: Bearish
In the GBPUSD market, price action recently rebounded from the 1.2135 support level, piercing through the middle limit of the Bollinger Bands. However, the previous session favored downward forces, pushing the price below the middle limit of the Bollinger Bands.
The ongoing session has kept this FX pair trading near the 1.2185 price mark. A bearish crossover has occurred on the RSI indicator, though its lines appear to be oriented sideways. Consequently, it seems that upside momentum may build up soon, and traders should keep an eye on their upside ambitions.
USDCHF: Bearish
The USDCHF market has sustained a consistent bearish trend for about fourteen sessions, with occasional attempts to interrupt the downward correction. Currently, price action of this major FX pair has bounced off the 0.8900 support level, and the ongoing session shows slight losses while remaining above this support level.
The RSI indicator maintains its upward trajectory from the oversold region, implying that the price action may continue to rise toward the 0.9000 price level.
USDCAD: Bullish
Despite the shifting sentiment around the US dollar, the USDCAD maintains its upward trajectory, possibly benefiting from the weaker momentum of the Canadian dollar. The Bollinger Bands indicator still reflects an upward orientation.
The current session has recorded modest profits, and the RSI lines continue to trend upwards following the previous crossover above the 50 mark of the Relative Strength Index indicator. Technically, all indicators on this chart suggest that prices will extend their retracement towards the 1.3797 price level.
AUDUSD: Bullish
The AUDUSD market has remained committed to its upward correction this week, likely influenced by adjustments in Australian dollar monetary policies that favor this pair. Consequently, price action has surpassed the middle limit of the applied Bollinger Bands indicator and is currently testing the resistance level at the 0.6400 mark.
The RSI lines are trending upwards towards the 80 mark, and with the pair now trading above the middle limit of the Bollinger Bands, it appears that this major FX pair will likely head towards the 0.6450 mark shortly.
EURJPY: Bullish
EURJPY, after testing the 160.00 resistance level in the daily market, experienced a bounce and dropped below 159.00. In the current session, we observe a small green price candle with a dashed shape, positioned below the 159.00 threshold and the 21-day Moving Average (MA) line.
The RSI lines are steeply descending into the oversold region, hinting that bearish forces may lose steam. Therefore, it’s plausible that the price action will not drop below the 158.50 support level but may advance toward the 159.50 mark.
USDJPY: Bearish
As volatility decreases in the USDJPY market over recent trading sessions, price action remains subject to tailwinds. Price action has been consistently above the middle band of the Bollinger Bands indicator.
While the ongoing session has seen minor losses, the Bollinger Bands indicate contracting volatility, and the RSI lines, positioned above the 70 mark of the indicator, appear to be signaling a bearish crossover. Traders may adjust their expectations towards the 150.50 mark.
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