The US dollar seems to have found moderate demand on Tuesday. This affected most of the major FX pairs either way. Some gained bullish traction, while bearish corrections intensified in others. Let’s further examine each of these pairs.
EURUSD: Bearish
The EURUSD has been on the receiving end of the better sentiment surrounding the USD. While the euro side maintains a rather tranquil characteristic, the strength gained by the USD has introduced some downward correction into this major FX pair. However, this happened as soon as price action in the market tested the uppermost limit of the Bollinger Bands.
However, the Bollinger Bands indicator itself maintains an upside bearing, which indicates the overall trend. Meanwhile, the Stochastic Relative Strength Index (SRSI) has a more near-term view of the market, with its lines now falling towards the 80 mark of the indicator. Considering the quietness of the euro, price action in this market may fall further towards the 1.0706 mark. However, traders may want to monitor fundamentals from the US concerning this.
GBPUSD: Bearish
Similar to the EURUSD, the GBPUSD also stays on the receiving end of the bullish gains in the USD market. Although the bearish correction seen in this market seems more significant than that on the EURUSD market, So far, today’s trading activities have recorded further price declines.
At this point, this major FX pair stands on the brink of falling below the middle limit of the Bollinger Bands. Meanwhile, the SRSI indicator lines continue to fall towards the oversold region of the indicator. Pending contrary fundamentals, traders may expect more price declines toward the 1.2450 price level.
USDCHF: Bullish
While the previously examined two markets have been on the receiving end of the bettering mood of the USD, this major FX pair has benefited from the US dollar momentum gain. The USDCHF has welcomed a moderate price increase, which resulted when the market pushed the lowest limit of the Bollinger Bands.
Today’s trading activity has further pushed the market closer to the middle limit of the Bollinger Bands. It appears that the upside correctional move may soon extend beyond the mentioned part of the Bollinger indicator, considering the upside trajectory of the SRSI indicator lines. Should price action cross this part, the market may secure additional upside traction, which may propel the market toward the 0.9200 mark.
USDCAD: Bullish
The USDCAD has also seen some decent price increases since the US dollar started regaining bullish traction. This propelled the market through the 1.3700 mark. Furthermore, today’s trading activities have shown that this major FX pair may head further upwards since trading activity has now appeared above the middle limit of the Bollinger Bands.
Simultaneously, the SRSI indicator lines can be seen trending upwards and are now at the 50 mark of the indicator. Technically, it appears that the market may soon hit the 1.3800 mark, all things being equal. This is because more market participants may join the trend at this point.
AUDUSD: Bearish
The bullish characteristics of the USD have caused the AUDUSD to retreat below a previously surpassed resistance price level of 0.6600. Nevertheless, this FX pair still trades above the middle limit of the Bollinger indicator. So, from a broader perspective of this market, this may still be regarded as a moderate bearish correction. However, one cannot rule out the possibility of the correction becoming more significant.
The SRSI indicator lines are now trending downward, with the leading line of the indicator now dipping below the 80 mark of the indicator. Therefore, should the Australian dollar continue to stay weak against the dollar, a more downward correction may be seen towards the 0.6520 mark.
EURJPY: Bullish
In the EURJPY daily market, there unfolded a notable downturn, a stark descent from its previous lofty perch beyond the 169.00 threshold. Although it broke through the 166.00 support line, the market found its footing soon after, stabilizing in the wake of the tumultuous plunge.
As of late, trading sessions have unfolded with a bullish trajectory, propelling the market past the pivotal midpoint of the Bollinger Bands indicator. Adding to the bullish sentiment, the Stochastic Relative Strength Index (SRSI) has surged upward, emerging from oversold territory. With these indicators in mind, traders are now turning their gaze toward the coveted 167.50 mark, viewing it as a promising target for potential gains.
USDJPY: Bullish
The USDJPY is retracing its steps towards what seems like an all-time high above the 158.00 price level. While the market is still at a significant distance from re-achieving that feat, it seems to be securing the needed momentum to revisit that price mark.
At the same time, we can see that the SRSI indicator lines continue to rise back upwards towards the overbought region. Consequently, this shows that the market may advance further, having crossed the middle limit of the Bollinger Bands indicator. At this point, it is fair to target a retracement of the 156.00 price level pending contrary market-influencing fundamentals.
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