The FX market has kicked off the new year; however, most major pairs still anticipate key fundamentals. These fundamentals are crucial, providing traders with impetus as they return to their trading desks.
EURUSD: Bullish
The EURUSD market sustained trading above the 1.1006 price mark earlier in the year. Yet yesterday’s trading activities witnessed the pair extending a leg downwards to test support at the 1.0944 mark. Today’s trading has shown a moderate recovery, bringing the pair back above the 1.0944 mark. However, the current price remains below the middle band of the Bollinger Bands indicator. Also, the Stochastic Relative Strength Index (RSI) curves are nearing a bullish crossover. Traders may anticipate an upside correction toward the 1.1000 mark, with Eurozone fundamentals playing a key role.
GBPUSD: Bullish
GBPUSD has gradually trended downward since its price action surpassed the 1.2750 mark. Since then, it has moved below the middle limit of the Bollinger Bands indicator. Yesterday’s session experienced a more significant price decline, bringing the market below the 1.2700 mark. However, today’s session has only produced minimal gains. It’s been observed that the ongoing session has seen the price action attempt to leap off the lowest limit of the Bollinger Bands. Meanwhile, the RSI lines are steadily trending towards the oversold region, suggesting a contrasting opinion about a potential bounce off the lowest band. If the dollar gains traction from the Feds, it may further drive this FX major pair toward support at the 1.2564 price level.
USDCHF: Bullish
Price action in the USDCHF market seems to have encountered resistance at the price support level of 0.8385. Subsequently, the FX pair has surged from this level, leaping towards the 0.8549 mark. However, trading activities persist below the middle band of the Bollinger Bands indicator. Additionally, the RSI indicator lines are now hyperextended, with the leading line already far into the overbought zone. Despite a minimal price decline in the ongoing session, assisting the pair in maintaining its bullish stance, USD market fundamentals are pivotal in determining whether price action will extend further toward the 0.8550 mark. Traders, in the meantime, can maintain their positions towards the 0.8550 mark.
USDCAD: Bullish
The USDCAD market is striving to resume trading above the 1.3308 price level. The pair gained significant traction during yesterday’s trading session, as evident from the appearance of the corresponding price candle. However, the major FX pair is now trading above the middle limit of the Bollinger Bands indicator. Analyzing the position of the last price candle indicates that bulls are endeavoring to reclaim support above the middle limit of the Bollinger Bands. Meanwhile, the RSI lines seem considerably hyperextended, suggesting that bullish momentum may be waning. Nevertheless, the ongoing session remains bullish, ready to propel the market towards the 1.3400 mark.
AUDUSD: Bullish
AUDUSD bulls have rebounded downward off the 0.6866 mark. Despite lowered momentum, price action has been corrected towards lower price marks. The ongoing session has posted only a moderate upside correction, keeping the FX pair above the support at the 0.6751 price level. Additionally, the ongoing session has placed AUDUSD above the middle limit of the Bollinger Bands. Simultaneously, a bullish crossover has occurred in the oversold region. The crossover isn’t too reactive, considering the emerging lines of the indicator following the crossover. This suggests that the bounce may strengthen toward the 0.6800 mark, provided the outcome of the Fed’s meeting doesn’t strengthen the US dollar.
EURJPY: Bearish
Within the EURJPY market, trading activities persist below the central Bollinger Bands, indicating a prevailing subdued trend. Examining the latest price candle reveals a small green body, indicative of increased downward pressure. Simultaneously, the RSI lines continue their descent into oversold territory, signaling substantial bearish influence. This prevailing bearish sentiment may hold sway temporarily, anticipating a shift upon the emergence of market-stimulating economic fundamentals. The aligned RSI indicator lines further underscore the bearish nature of the price action, hinting at potential attempts to breach the support at 154.80 in anticipation of forthcoming eurozone developments.
USDJPY: Bullish
Price action in the USDJPY market has been bearish since November last year, with bullish momentum seemingly terminating near the 152.00 resistance. This major FX pair has been steadily trending downward, with occasional breaks interrupting the downward trend, indicating bearish dominance. Furthermore, the ongoing session has presented what seems like a continuation of such interruptions, as price action is now reaching the middle band of the Bollinger Bands. The RSI indicator line has delivered a bullish crossover and continues trending upwards. The significant distance of separation between the lines of the RSI shows that the market is volatile and may assist the pair toward the 143.00 price level.
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