The week has been quite eventful and has brought a lot of intrigue to the major FX pairs. Since most of the major FX pairs are paired against the US dollar, the mood of the USD has been the key determinant in this week’s analysis. Let’s further examine the market.
EURUSD: Bullish
The EURUSD has extended its upside rebound after its price action recoiled off the support at the 1.0700 mark. The price action of this major FX pair rose above the green Guppy Multiple Moving Average (GMMA) curve in the previous session.
The price move seen in the previous session seems to be the most significant in recent sessions. The ongoing session has continued on the same path as prices rise further above the two red lines of the GMMA indicator. Likewise, the Moving Average Convergence Divergence (MACD) indicator lines have kept on rising upwards from below the center line, suggesting that upside forces are gaining more ground. Since it appears that the USD remains subdued, this may also create more push for price action in this market towards the 1.08500 mark.
GBPUSD: Bullish
The GBPUSD earlier came close to falling below the 1.2565 support level in the previous session. However, the dollar lost its moderate momentum. This took the pressure off the pair, and the price action for this major FX pair rebounded in the upside direction. The current session has continued the upside correction, as the pair seems to have capitalized on more favorable economic development.
This pair now trades above the green set of GMMA indicator lines, while testing the red ones. The MACD indicator lines have continued to rise upward from below the equilibrium level. In addition, green indicator lines can be seen appearing above the equilibrium level, which shows that bullish momentum is of good strength and may advance the market toward the 1.2700 mark.
USDCHF: Bearish
While the sentiment surrounding the USD remains unfavorable, this has caused the USDCHF to print more losses. However, the downward correction seen in this market seems minimal, yet it has brought the market below two green GMMA lines. Also, the MACD indicator lines have now converged above the equilibrium level as they prepare to signal a trend reversal should fundamentals remain unfavorable.
Nevertheless, careful observation of this market will reveal that price action has been on a general uptrend ever since it rebounded off the support at the 0.8385 mark. Therefore, traders can monitor fundamentals that may assist the pair, while considering targeting the 0.8870 mark.
USDCAD: Bearish
Price action in the USDCAD market seems to lack clear direction at this point. This may be largely due to the weakness of the USD. The appearance of the last price candle here suggests that upside forces and downward forces are locked in a fierce struggle. However, downward forces are leading, which is why this major FX pair now trades below the 1.3510 mark. It is worth noting that this market may regain traction given its position above most of the GMMA lines.
The MACD lines are above the equilibrium level but appear to be converging slightly for a bearish crossover in light of the minimal downward corrections that have occurred in this market over the previous session. Considering the appearance of the last price candle, traders may want to refrain from bearish speculations, as the market may take off towards the 1.3600 mark.
AUDUSD: Bullish
AUDUSD is capitalizing on dollar weakness as the pair’s price rises smoothly upwards. Price action can be seen rising very quickly through the GMMA lines. At the same time, the indicator lines can be seen crossing each other at this point. This will increase bullish convictions amongst traders, thereby causing further price increases as trading activities continue.
Likewise, the MACD indicator lines are also rising upward from below the equilibrium level. In addition, the indicator bars can be seen appearing progressively taller and solid green above the indicator’s center line. Observing the activities on technical indicators here, it could be seen that this market has bullish characteristics and may see more price increases toward the 0.6650 mark.
EURJPY: Bullish
During the recent trading session, EURJPY’s price action surged past the Guppy Multiple Moving Average (GMMA) lines on the daily chart. Although a modest downward correction occurred in the ongoing session, prices remained above the previous session’s close, with trading persisting above the GMMA lines.
The Moving Average Convergence Divergence (MACD) indicator lines have also maintained a slight upward trajectory above the equilibrium level, indicating potential bullish momentum. Given these technical signals, traders may find opportunities focusing on the 162.50 mark, anticipating favorable fundamental developments for the pair.
USDJPY: Bullish
The USDJPY market has broken a three-month-old resistance level in today’s trading session. Over the previous session, this market had behaved in a very unusual way. This is because buyers have been winning, yet price action in the market has descended towards lower marks. However, upside forces were able to return the market to an upside path, breaching the resistance at the 150.00 mark.
Also, as a result of this price action, it has been able to rise above the GMMA indicator lines. Meanwhile, the Stochastic Relative Strength Index indicator has a rather unsure stance, as its lines at this point still have a downward trajectory. Nevertheless, traders can keep their hopes up, as price action may retrace the 151.00 mark soon.
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