Most of the incoming fundamentals have left the major FX pairs only minimally stimulated. However, additional fundamentals are set to arrive before the close of the week, potentially providing more impetus to price movements in the market.
EURUSD: Bearish
In the GBPUSD market, it was earlier observed that downward forces were weakening. Subsequently, there was a moderate upside correction. In today’s trading session, a moderate downward correction has been evident, with trading activities remaining below the 21-day Moving Average curve.
Nevertheless, the Moving Average Convergence Divergence (MACD) indicator lines suggest that downward forces are still weakening. This is depicted on the MACD indicator as its bars continue to shorten and appear pale red. The indicator’s lines are also converging, hinting at a possible crossover that could provide more upside traction to price movements toward the 1.08200 mark.
GBPUSD: Bearish
Despite minimal volatility, the GBPUSD market has approached the 21-day MA line. However, today’s trading has brought a moderate downward correction to this major FX pair. It’s notable that the downward correction occurred as soon as price action tested the 21-day MA line.
Nevertheless, the MACD bars remain pale red, indicating that downward forces are still weak. The MACD lines maintain a generally downward trajectory, suggesting that upside forces still have the potential to emerge as the downward ones weaken, potentially taking prices back through the 1.2564 mark. However, the role of US fundamentals will be crucial in influencing these dynamics.
USDCHF: Bearish
The USDCHF pair has been on a downward trend over a longer time frame. However, it is evident that a recent upside correction occurred, bringing this major FX pair back above the 0.8800 mark. Shortly afterward, price action spiraled towards support at the 0.8751 level. In today’s trading activities, there was a minimal upward correction, yet it remains at a considerable distance below the 21-day MA line.
Meanwhile, the indicator lines are still moving upward. To represent the modest gains, the bars of the MACD are still pale green. Consequently, this suggests that price action may move towards the 0.8800 mark.
USDCAD: Bearish
The USDCAD market has generally been rising, but not without challenges. The last price candle on this chart shows a slight downward correction in price movement. However, price action is closely aligned with the 21-day MA line. Simultaneously, the MACD indicator lines are still ascending from below the equilibrium level.
It’s worth noting that the last bar of the MACD indicator is now pale green, indicating a challenge to the upward forces. This aligns with the appearance of a small red-price candle on this chart. Therefore, traders can anticipate prices to continue towards the 1.3700 price level.
AUDUSD: Bullish
Price action in the AUDUSD market has been generating minimal profits. The ongoing session has its upper shadow piercing through the 21-day MA line, suggesting that the pair had previously traded above the MA line, indicating a bullish trend. However, there has been some price contraction, forcing prices below the indicator line. Nevertheless, the minimal gains persist, maintaining the major FX pair’s minimal upside trajectory.
Meanwhile, the MACD lines are generally trending downward towards the equilibrium level, and simultaneously, the bars of the indicator are now pale red, suggesting a continued decrease in bearish momentum. Therefore, we can still anticipate an upside correction through the 21-day MA line toward the 0.6600 mark.
EURJPY: Bearish
The EURJPY daily market has experienced a notable upward rebound, with buyers maintaining control over price action, evident in the absence of a red price candle for the past four trading sessions. The Moving Average Convergence Divergence (MACD) indicator consistently signals a weakening of downward forces as trading activities progress.
Despite the bullish sentiment in the ongoing session, the pair continues to trade significantly below the 21-day Moving Average line. Intriguingly, price behavior suggests a minimal correction from the resistance at the 157.50 mark, challenging the prevailing market trend. Consequently, indications from this market point towards a potential correction, extending the pair’s price towards the 158 mark.
USDJPY: Bearish
The USDJPY earlier experienced a bounce back as its price action extended a long leg through the support level formed by the 144.00 mark. This seemed to have triggered some demand, bringing prices through the $145.00 mark. Nevertheless, the last price candle on this chart presented challenges to upside traction in this market.
However, the MACD indicator keeps showing that bearish momentum is declining in strength, as the indicator’s bar keeps growing shorter. Similarly, the gap between the two indicator lines is closing up as the lines continue to converge. Although price action is still below the 21-day MA line, with the continued declining trend in the MACD indicator bars, we can suggest that the upside correction can approach 148.00 from here.
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