Improving sentiment in the US dollar has caused some significant price swings in the major FX pairs. Also, with the US CPI inflation report arriving better than anticipated, more moves may still be expected from the major FX pairs this week.
EURUSD: Bearish
The EURUSD pair has been on the receiving end of the better mood in the US dollar. The major pair corrected sharply downward towards the 1.0700 mark in the previous session. However, the ongoing session has presented minimal resistance to the headwind in this market. This has kept the market above the psychological level at the 1.0700 mark.
Downward momentum seems quite strong in this market, with price action at significant levels below the Guppy Multiple Moving Average curve. Likewise, the Stochastic Relative Strength Index (SRSI) indicator has delivered a bearish crossover, with the indicator lines falling sharply downwards into the oversold region. Consequently, it is fair to assume that it’s a matter of time before this market breaks downward and supports the 1.0700 mark.
GBPUSD: Bearish
Moving to the GBPUSD as one of the major FX pairs, it could be seen that the pair has also been on the receiving end of the printed gains in the US dollar market. As anticipated ever since price action crossed below the GMMA indicator lines, we can see that the pair has broken the support at 1.2570.
More downward corrections may be anticipated considering the bearish trajectory of the SRSI indicator line following the last bearish crossover. Also, the ensuing lines don’t really seem hyperextended, which suggests that bullish momentum may not be quite strong in this market. Therefore, traders can anticipate that this pair will approach the support level at the 1.2500 mark ahead of any contrary fundamentals.
USDCHF: Bullish
USDCHF seems hyper bullish. It appears that the Swiss franc may have weakened significantly, giving the major FX pair the opportunity to gain significant traction. The previous session witnessed a significant price spike, which saw the pair rise through the resistance at the 0.8800 mark.
The ongoing session has posted minimal resistance to price increases considering the appearance of a small spinning top price candle on the chart for the ongoing session. Likewise, the SRSI indicator isn’t taking the resistance posed into cognizance as the line of the indicator rises steeply upward in the overbought region. Consequently, this suggests that the market may still rise towards the 0.9000 mark.
USDCAD: Bullish
USDCAD bounced off the support at the 1.3400 mark in the past two sessions. As it could be seen, the previous session saw a significant price increase. This gave the market a bullish characteristic despite the minimal price downward correction seen in the ongoing session. The downward correction brought the market to trade at the 1.3549 mark.
Nevertheless, even with the seen forward correction, bullishness is still reflected as the SRSI indicator lines remain steeply pointed toward the overbought region. It is worth noting that the corresponding price candle for the ongoing session seems more like a hammer-like price candle, which may signal a trend reversal. Therefore, it is necessary that while traders may want to target the 1.3650 mark, they should ensure good loss control measures.
AUDUSD: Bullish
The AUDUSD pair behaved as anticipated earlier this week, as the market corrected downward and sought support at the 0.6490 price mark. While this occurred in the previous session, the ongoing session has posted an upside rebound, which brought the market to trade at 0.6477 as of the time of writing. Nevertheless, trading activities in this market remain below the GMMA lines, which dampens further upside hope in this market.
Likewise, the SRSI indicator lines have delivered a bearish crossover near the 50 levels of the indicator. Nevertheless, it is worth taking cognizance of the ensuing lines of this indicator, which seem a bit sideways. So, it is necessary that traders pay attention to fundamentals, as they will be key in determining if the downward correction will continue toward 0.6400 or not.
EURJPY: Bullish
EURJPY has continued to stay relatively bullish since its price action bounced off the support constituted by the green set of the GMMA indicator lines. However, the ongoing session has appeared below the close of the previous session. And, though the session still manages to print some minimal profits, it could still be seen that prices have corrected downward. Trading continues above the GMMA indicator lines, but the SRSI indicator lines have a deflection in their leading line. However, the market still has a general upside bearing and may still approach the 162.00 mark, provided the fundamentals remain constant.
USDJPY: Bullish
The USDJPY pair continues to head upwards as its price action witnessed a significant bounce off the support at the 148.00 support level in the past six sessions. The current session has seen the pair break through the price ceiling at the 150.00 mark. Although the ongoing session has formed below the close of the previous session, trading indicators are optimistic concerning a further price increase. The price candle corresponding to the ongoing session remains above the GMMA lines. Also, the SRSI indicator lines have continued to rise upwards in the overbought zone. Going by these two indicators, traders can eye the 151.50 mark as trading continues for the week.
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