As the US dollar extends bearish corrections, there have been significant changes among the major FX pairs. Some have been able to rebound off bearish paths, while others have been retracing support levels since yesterday’s trading activities. Let’s take a closer look at this for more insights.
EURUSD: Bearish
The US dollar has further weakened, causing the major FX pair (EURUSD) to extend the upside corrections from yesterday’s trading. Consequently, price action in this market has started climbing above the Guppy Multiple Moving Average (GMMA) curve. However, the ongoing session reflects that upside momentum has seen a significant decline compared to that of the previous session.
Be that as it may, the Stochastic Relative Strength Index (SRSI) indicator lines have continued to rise upward. Nevertheless, traders should note that the SRSI indicators are now moving closer to each other than before. However, the market seems to be heading towards the 1.0700 mark, given that favorable fundamentals are maintained.
GBPUSD: Bullish
Similar to what was observed in the EURUSD market, it can be seen that the GBPUSD market has been correcting upwards. However, it appears that the most significant gains were printed about four sessions ago in this market. The corresponding price candle to the ongoing session can be seen testing the 61.80 Fibonacci Retracement level as a resistance.
Also, the SRSI lines are still rising upward but seem to be slowly approaching each other. This somewhat appears consistent with what was perceived in the EURUSD market. As a result, this may be due to changing dynamics in the US dollar market. Be that as it may, all things being equal, this FX pair may still head towards the 1.2500 mark.
USDCHF: Bearish
The USDCHF pair has maintained a bearish path towards the support level at 0.9023. Price action can be seen retreating downward after testing the 0.9300 mark. Price action on the price chart can be seen descending below GMMA lines. Meanwhile, the SRSI indicator lines have fallen deeply into the oversold region.
The last price candle can be seen just above the last line of the GMMA lines. Although it appears that bearish momentum here has declined a bit from what it was in the previous session, the market has maintained a downward trajectory. Should the US pre-market open present some hope, perhaps this FX pair may bounce off the 0.9100 mark.
USDCAD: Bearish
The USDCAD market maintains a bearish characteristic as well. Today’s trading so far has further printed more bearish corrections. Nevertheless, the last price candle can still be seen above the two GMMA lines. Additionally, the SRSI indicator lines are now approaching each other while in the oversold region.
Technically, this hints at a continued decrease in bearish momentum. This makes sense as price action remains above most of the GMMA lines, which favors the development of upside momentum. But the hope of a reversal towards the 1.3800 mark significantly hinges on fundamentals from the US side of the market.
AUDUSD: Bullish
The Australian dollar continues to gain against the US dollar as more favorable fundamentals arrive. Today’s trading activities have pushed the market further upwards from the close of the previous session.
In addition, the last price candle on this chart has placed the current price of this pair above the GMMA lines, which favors further development of more headwinds. The SRSI indicator lines are still rising upward, even despite the contraction that can be perceived through them. This aligns with the prediction that the market can still advance further towards the 0.6500 mark.
EURJPY: Bearish
While the EURJPY pair has maintained a bullish trajectory towards the 165 mark in the past four sessions, the ongoing session has seen a minor downward correction. Yet, the market remains favored to keep trending towards higher ground.
Also, the SRSI indicator lines still have an upside trajectory, while their lines can be seen converging. However, more favorable news will have to arrive on the side of headwinds to initiate a trend reversal as the Euro maintains a strong stance on a fundamental basis. Therefore, traders can still anticipate the market surfacing above the 165.00 mark.
USDJPY: Bullish
While the USDJPY has a general bullish characteristic over the previous session, the current session has seen significant contractions. This has brought the market lower and deflected it from its bullish path. However, price action remains above most of the GMMA indicator lines.
Also, although the last price candle appeared as a dash-shaped price candle, it is still appearing green. Meanwhile, the SRSI indicator lines have delivered a crossover in the overbought region. Technically, this suggests that the market may proceed towards the 154.00 mark. Nevertheless, this will be dependent on more impetus coming from the United States.
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