The Fed’s reluctance to alter interest rates has allowed the US dollar to print some gains, which has had a resultant effect on most of the major FX pairs. While some other fundamentals may still have a counterbalancing effect, let’s take a closer look at each of these pairs.
EURUSD: Bearish
The EURUSD has seen moderate bearish pressure today as the US dollar printed decent gains due to an unaltered interest rate. It could be seen that the previous session was significantly bearish, considering the appearance of the corresponding price candle. However, market forces seem to have played out in the ongoing session.
Here, it could be seen that price action has significantly contracted, looking at the upper and lower shadows of the last price candle on this chart. Consequently, this suggests that the 1.0800 support is somewhat strong, as the market could not fall below it yet. Nevertheless, price action still lies below the Guppy Multiple Moving Average (GMMA) lines, and the Stochastic Relative Strength Index lines are at a crossover point. By implication, this signals that this major FX pair may plunge below the 1.07900 price mark.
GBPUSD: Bullish
It appears that the British seem to have an overpowering tailwind to have been able to print a moderate profit against a brewing US dollar. The major FX pair has seen decent gains as of the ongoing session of a daily timeframe. Also, the appearance of a lower shadow suggests that upside forces seem to be of significant strength.
Nevertheless, price activity remains below most of the GMMA lines, but the SRSI indicator lines continue to rise upward and out of the oversold region. In addition, looking at the magnitude of printed profits, it appears that upside forces may aid the printing of more gains in this market. But to secure bullish hopes, the market may have to surpass the two sets of GMMA lines. Consequently, that may aid the market towards the 1.2800 threshold.
USDCHF: Bearish
About two sessions ago, price action in the USDCHF market surpassed the 0.9023 price mark. But in the ongoing session, the Swiss franc seems to have grown considerably stronger against the US dollar. Subsequently, this resulted in a downward correction towards the $0.9023 threshold. Despite the downward correction, the major FX pair stays above most of the GMMA lines.
Meanwhile, the SRSI indicator lines are at the initial point of a bearish crossover, which suggests that headwinds may grow stronger in this market. Should the bearish crossover eventually occur on the SRSI indicator, we can anticipate stronger bearish momentum, which may cause the market to break the support at the 0.9023 mark towards the 0.8900 mark.
USDCAD: Bearish
The USDCAD market has stayed above the 1.3500 level after it broke that resistance during yesterday’s session on a daily chart. Although today’s trading activity has felt it from market forces as they battle for control of price action, Consequently, this has limited price progress in either way as trading activity gets hooked in a gridlock.
At this point, the SRSI indicator lines suggest that the market is choppy, which makes it a bit more difficult to predict possible market directions. Nevertheless, price action remains above the GMMA curves, but the behavior of the SRSI isn’t assuring the possibility of a continued upside correction. Be that as it may, traders can still hope that the market may pursue the 1.3600 mark.
AUDUSD: Bearish
The AUDUSD pair is one of the major FX pairs that have been negatively impacted by the improved mood of the US dollar. The ongoing session has extended the price decline for the third consecutive trading session. This has further dipped the market below the GMMA lines, consequently strengthening bearish momentum.
Similarly, the SRSI lines can be seen converging for a bearish crossover. The eventual occurrence of the bearish crossover will likely intensify the downward corrections. This will likely cause price action to break the support at the 0.6490 mark. Nevertheless, traders should keep an eye on influential fundamentals that may introduce a turn of events in the market.
EURJPY: Bearish
About eight sessions ago, the EURJPY market peaked around the 165.00 mark. At that mark, it appears that price action may have hit some taken profits, which resulted in a moderate downward correction. The ongoing session has seen some action between market forces, which saw the session contract significantly. However, it appears that upside forces are still trying to have the upper hand. The body of the last price candle on this chart lies more on the side of buyers, which shows that they have a stronger influence on price activity. The lower shadow seems quite loud and therefore points out that tailwinds maintain a more threatening appearance. The SRSI lines have converged for a bullish crossover and further align with the opinion that the market may continue towards the 165.00 mark.
USDJPY: Bullish
The USDJPY generally has a bullish outlook on a broader view of the market. However, it could be seen that the market has consolidated just above 161.50 for a while. However, in the ongoing session, it seems to have returned the market to a considerable upside path. The last price candle on this chart has placed the market further above the GMMA lines.
At this point, price action closes on an approximately 4-month high. However, the SRSI lines now have a bearish path, despite the moderate gains in the current session. Considering the Fed’s position concerning the interest rate, this may cause the USD to gain more shine. Consequently, this may supply more momentum to this major FX pair, causing it to resurface above the 153.00 threshold.
Get free access to our lifetime VIP membership. Join us here.
Leave a Reply