The US dollar seems to have gathered significant traction recently. The gained traction has created some bearish pressure in some of the major FX pairs that have it as a quote. However, on the other hand, FX with the US dollar as the base currency has been enjoying the effect of the tailwind created by the same factor.
EURUSD: Bearish
The GBPUSD pair has once again failed to break the resistance at the 1.0944 mark. Consequently, there was a sharp price decline in the previous session. Today’s trading activity has yet again printed some more losses for the pair as the market heads south. Price action in this market remains below the Bollinger Bands’ middle band.
The ongoing session has continued to push against the lowest band of the Bollinger Bands as a result of the bearish pressure in the market. Meanwhile, the lines of the [indicator] have delivered two quick bearish crossovers below the 40 level of the indicator. Consequently, this signals that bears are in firm control of price movements in this market, and the market may reach the 1.0800 mark.
GBPUSD: Bearish
As earlier mentioned, the GBPUSD, a major FX pair with the US dollar as its quote, has remained pressurized towards lower price levels. Price action in this market has continued to respect the resistance at the 1.2749 mark. After price action failed to break the resistance at that mark, there was a rather swift downward correction that followed.
This has caused price activity to keep hugging the lowest limit of the Bollinger Bands. Meanwhile, the stochastic RSI indicator lines have been falling sharply into the oversold region of the indicator. As a result, this has brightened bearish hopes in this market, affirming that prices in this market will at least hit the 1.2530 mark.
USDCHF: Bullish
In line with the above-deduced fact, the USDCHF is one of the major FX pairs that has been benefiting from the improving sentiment surrounding the US dollar. Although looking at the market ever since it took a rebound off the support at the 0.8385 mark, we can see that price action has progressed upwards in a manner that is too volatile. However, yesterday’s trading activity saw the pair take a more significant leap upward.
Also, the ongoing session has been progressing in the same direction, keeping price action pushing against the uppermost band of the Bollinger Bands indicator. Likewise, the RSI indicator lines have continued in an upward direction even as the leading line hits the 100 mark of the indicator. Provided the sentiment surrounding the US dollar remains constant, this market will progress towards the 0.8700 mark.
USDCAD: Bullish
Another major FX pair that benefits is USDCAD. However, unlike the upside correction seen in the USDCHF above, it can be seen that this pair has a more volatile and vigorous upward price action. The market had earlier slowed down after breaking through the 1.3302 resistance but soon picked up a more consistent approach towards a much higher resistance at the 1.3510 mark. The ongoing session has broken through the mentioned resistance with more optimistic signs on trading indicators. The stochastic RSI indicator has displayed a bullish crossover in the oversold region. With the pair now trading at the 1.3527 mark, combined with positive indications emerging from technical indicators, this suggests that prices may rise further towards the 1.3600 mark.
AUDUSD: Bearish
AUDUSD falls among the major FX pairs that have been on the receiving end of the improved mood surrounding the US dollar. Since last year, when price action in this market popped through the 0.6800 mark, bulls in this market seem to have exhausted all their strength. This has sent prices spiraling southward. As a result, price action has broken down multiple price levels, both psychological and non-psychological.
Bearish pressure has intensified and kept the market hugging the lowest limit of the Bollinger Bands. Also, the RSI indicator has no trend reversal hopes to offer traders, as its lines continue to drag interwoven in the oversold waters. Consequently, this suggests that bearish traders may record more profits towards the 0.6500 mark.
EURJPY: Bullish
The daily market dynamics of EURJPY exhibit a notable degree of unpredictability, with the size of price candles on the chart hinting at inherent instability. Over the last two trading sessions, there has been a decisive breakthrough above the 159.00 resistance level, and the latest session indicates the establishment of a support level above the previously breached resistance.
Concurrently, ongoing market activity reveals robust upward momentum, as evidenced by the proximity of trading to the upper bounds of the Bollinger Bands. Subsequent sessions consistently propel prices higher, while the Stochastic Relative Strength Index maintains its upward trajectory following a recent bullish crossover above the 80 mark. From a technical vantage point, these indicators collectively suggest the potential for further upward movement in prices for this currency pair towards the 161.30 mark.
USDJPY: Bullish
The USDJPY pair has kept on advancing through more elevated price marks in what seems like a more progressive and stepwise manner. The market has progressed through the resistance at the 147.00 mark, with the previous session sitting above the just-surpassed resistance.
The ongoing session began at the close of the previous session. This hints at the intent of buyers for an upside retracement further upwards. The RSI indicator lines are also showing an upward trajectory after delivering a crossover in the overbought region. As of the time of writing, the ongoing session is appearing as a dashed green price candle at the close of the previous session. Consequently, this suggests that prices may increase towards the 148.10 mark.
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