The fluctuating nature of the US dollar has led several major FX pairs into consolidation. However, some major pairs have managed to sustain their upward trajectory. Presently, the momentum of the USD has once again intensified. Let’s evaluate the potential performance of these markets.
EURUSD: Bearish
The EURUSD breached the 1.0600 mark earlier this week. However, with the recent increase in USD momentum, the FX pair retracted below the 1.0600 mark even in the ongoing session.
Furthermore, current prices have fallen below the Guppy Multiple Moving Average (GMMA) lines. Additionally, the Relative Strength Index (RSI) indicator lines have crossed for a bearish movement below the 40 level, implying the possibility of continued downward correction towards the 1.0500 mark, given the enduring bullish momentum of the USD.
GBPUSD: Bearish
The GBPUSD is among the major FX pairs affected by the US dollar’s momentum gain. Consequently, the pair has continued its decline below the Guppy Multiple Moving Average (GMMA) lines since the previous session. Presently, in the ongoing session, it’s experiencing reduced losses, now positioned beneath the two sets of GMMA indicator lines.
In contrast, the RSI indicator lines have sustained an upward trend since the previous bullish crossover. Currently, these two applied technical indicators offer divergent market opinions. As a result, fundamental data from both sides of the market will play a crucial role in determining a potential bullish reversal. Nevertheless, it seems likely that prices might still drop below the 1.2100 mark.
USDCHF: Bullish
The USDCHF pair has significantly benefited from the US dollar’s momentum gain. In the past week, there has been a consistent increase in upward momentum. Presently, the price action has surpassed the GMMA line. However, the 50 Fibonacci Retracement level seems to be providing relatively strong resistance due to a minimal downward correction at that level.
Nevertheless, the price action remains above the two sets of GMMA lines. On the RSI indicator, there have been two quick crossovers, with the latest one being a bullish crossover. As a result, this market still maintains an upside potential toward the 0.9200 mark despite the minor downward correction.
USDCAD: Bullish
Similar to the USDCHF, USDCAD has steadily gained bullish momentum, pushing it above the 1.3800 mark. At this stage, the pair has reached a multi-month high. The ongoing session has commenced above the two sets of GMMA lines. Additionally, the position of the body of this price candle suggests that bulls are firmly controlling the market.
Furthermore, the RSI indicator indicates that bullish momentum might be strengthening, even in the overbought region, as the indicator lines have converged for a bullish crossover. Therefore, traders can anticipate a retracement toward the 1.3930 mark.
AUDUSD: Bullish
The AUDUSD pair had previously extended its upward correction that began the previous week on Monday. However, as soon as the US dollar began gaining momentum, this major FX pair deviated from its upward track. At this point, this market has retreated below both sets of the GMMA lines.
Furthermore, the RSI lines have converged, suggesting a reversal in trend around the 70 mark of the indicator. It appears that the price action in this market may move toward the 0.6300 mark again. However, upcoming fundamental data set to be released this week will be crucial in determining whether the price action will drop below the mentioned mark.
EURJPY: Bullish
Swing traders in the daily EURJPY market observed a sudden surge in price, driving it from just below the 158.00 mark to 159.00 in the prior session. This development caused the price action of this pair to rise above the Guppy Multiple Moving Average (GMMA) curve.
Moreover, the RSI indicator lines have consistently trended upward, despite the appearance of a red price candle during the current session. With the price action remaining above the Moving Average lines, there’s a higher likelihood that this market will sustain its upward trajectory, potentially breaking through the resistance at the 160.00 mark.
USDJPY: Bearish
The USDJPY has broken through the 150.00 threshold. This market previously consolidated near the 150.00 level, but the recent momentum gain in the US dollar led to a sudden surge in the market, propelling its price action above both the 150.00 and 151.00 price marks. At this point, the market has surpassed both the green and red sets of the GMMA indicator.
Furthermore, the RSI indicator lines are still ascending despite the presence of a red dash in the price candle below the close of the previous session. This shows that the upside momentum remains viable and may continue pushing the market upwards. Moreover, key data scheduled to emerge this week might provide additional impetus for this market and similar ones.
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