With all eyes on the United States Consumer Price Index (CPI), most of the major FX pairs seem to lack a clear direction at this point. While this is true, a few of these pairs have yet to continue or at least aim to continue on their chosen trajectory. Let’s take a closer look at them in more detail.
EURUSD: Bullish
The EURUSD market turned bearish when its price action peaked at the 1.1100 mark. Subsequently, its price action fell through the support levels at the 1.1000 and 1.0944 marks. Trading activity for this major FX pair has since hovered close to the 1.0944 mark. The euro side seems a bit less stimulated over the past few sessions, while the USD side has lacked much impetus. Consequently, this has caused prices to consolidate even as the market expects the US CPI. Only a small-bodied green price candle has appeared for today’s trading session.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator has started showing that downward forces are now losing strength. Nevertheless, further upside correction may be anticipated towards the 1.1000 mark ahead of the arrival of the US CPI report.
GBPUSD: Bearish
The GBPUSD market continues to trade within a fairly wide range of 1.2749 and 1.2564. Meanwhile, the market seems to have crossed below the middle limit of the Bollinger Bands by a whisker. Consequently, this may make way for further downward correction as trading activities continue for the day. Likewise, the MACD indicator suggests that headwinds are likely to intensify.
This can be seen as the MACD lines pick a new downward trajectory, and the bars of the indicator appear red below the equilibrium level. Consequently, trading activities may approach the 1.2600 mark, aided by the arrival of the US CPI.
USDCHF: Bullish
The USDCHF pair has maintained a favorable stand against downward forces. This major FX pair rebounded off the support at the 0.8385 mark during the previous week. The upside correction regressed moderately earlier but soon picked up again during yesterday’s trading activity. Today’s trading session seems to have started on the same path. However, the session is still light on profits considering the size of the price candle.
Nevertheless, trading activities are now above the middle limit of the Bollinger Bands. The MACD indicator lines have continued on their upward path, indicating that bullish momentum is still present in the market. Consequently, we can suggest that the market may extend the upside correction towards the 0.8600 mark.
USDCAD: Bearish
The USDCAD pair remains positive despite the minimal downward correction printed in the current session. This major FX pair has maintained its assumed upward trajectory on the second day of the year. Furthermore, price action has moved above the middle limit of the Bollinger Bands.
Despite the minimal downward correction, the uppermost limit of the Bollinger Bands is tilted upward as it accommodates price volatility. With the MACD indicator lines continuing in their upside path, the market can anticipate further upward corrections. Also, it should be noted that this happens when the last bar of the indicator is pale green in appearance. Therefore, traders can still expect price action towards the 1.3500 mark.
AUDUSD: Bullish
Considering the AUDUSD market on a much larger time frame, it can be seen that price action has been making higher lows since last November. In today’s trading session, price action has bounced off the support at the 0.6660 mark.
Considering the size of the last price candle and the pale appearance of the bars of the MACD indicator, it suggests that upside forces may gain traction. Although the lines of this indicator continue to descend toward the equilibrium level, there aren’t many bullish signs yet from trading indicators. The appearance of an upper shadow shows that downward forces are already influencing the market. This signals that should the CPI report arrive favorably, price action may descend lower towards the 0.6620 mark.
EURJPY: Bullish
As the EURJPY hovers above the 157.00 mark, a meticulous analysis reveals a bullish momentum unfolding in the current sessions. Despite the seemingly petite size of the latest price candle, a closer look exposes a longer lower shadow, with the body nearing the upper shadow.
This resilience has maintained the pair’s position above 157.00, securely residing beyond the Bollinger Bands’ midpoint. The Moving Average Convergence Divergence indicator exhibits upward trends, and the indicator bars persist above the equilibrium level, hinting at a potential move toward the 159.00 mark.
USDJPY: Bullish
The USDJPY pair has been trending sideways above the 143.50 price level. It can be seen that the market hasn’t experienced many movements ever since price action surfaced above the 143.73 price level. The last price candle here has placed the pair to trade above the 144.73 price level. Simultaneously, the mentioned level also stands above the middle bands of the Bollinger Bands.
Meanwhile, the MACD lines have been trending upward from below the equilibrium level. The ongoing session has landed bullish and seems to brighten up the chances of further upside corrections in this market. The upward trajectory of the MACD lines also agrees with the fact that bullish momentum may still spark in this market. Also, a better-than-expected CPI will be key in determining if the upside correction will continue towards the 146.00 mark.
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