0This week’s analysis of the major FX pairs reveals the effect of renewed weakness in the USD. This has allowed most of the FX pairs examined to print considerable bullish profits today. Meanwhile, others seem to have been recording gains since the beginning of this week’s trading activities. Let’s further examine each of these pairs ahead of the upcoming US CPI.
EURUSD: Bullish
The EURUSD pair has seen a moderately extended upside correction. The price of this major FX pair has since recovered significantly since it dipped sharply to the 1.0500 mark. At this point, the EURUSD has broken through the 1.0800 mark. The current session is still occurring above the Guppy Multiple Moving Average curves.
Likewise, the Stochastic Relative Strength Index (SRSI) indicator lines have arrived in the overbought region. Also, this indicator has delivered another upside crossover in that region. The leading line of the RSI has hit the 100 mark, while the lagging one follows. At this point, it appears that momentum may still cause the market to approach the 1.08500 mark pending contrary fundamentals.
GBPUSD: Bullish
GBPUSD has continued to print profits since the beginning of this week’s trading activities. The major FX pair has been able to rise through the psychological resistance at the 1.2500 mark. It has subsequently traded above the price mark.
In more recent times, it appears that the upside trajectory in this market has become steeper since the start of the week. The current session is happening above the GMMA indicator lines. The SRSI indicator lines can be seen rising sharply into the overbought region. At this point, the market is at the point of breaking a psychological resistance level at the 1.2600 mark, and it’s looking likely it will do so.
USDCHF: Bearish
Due to the weakness in the US dollar, the USDCHF has been on the receiving end. Price action in this market has been correcting downwards minimally, as can be seen through the last two price candles on this chart. Meanwhile, price action continues to fall below the GMMA indicator lines.
Nevertheless, the SRSI indicator lines maintain an upward trajectory while still in the oversold region. However, traders may want to lean more on the fundamental aspect of the market and expect that prices may descend towards the 0.9000 mark ahead of the US CPI data.
USDCAD: Bearish
Not long after price action in the USDCAD market broke through the 1.3700 mark, the USD started losing traction. This has subsequently seeped into the USDCAD market, causing its price action to retreat below the 1.3700 mark. This major FX pair trades at the 1.3679 price mark as of the time of writing.
As a result, the market has started falling below the GMMA indicator lines. To that effect, the SRSI indicator lines can be seen falling sharply into the oversold region. Although the movement of the SRSI indicator seems a bit exaggerated, it does depict the prevalent trend in this market. Therefore, traders can anticipate that prices will decline, at least towards the support at the 1.2650 mark.
AUDUSD: Bullish
The AUDUSD market has continued to print profits. The market eventually surpassed the technical resistance price level at the 0.6600 mark. The pair now trades at 0.6639 as of the time of writing. Meanwhile, the appearance of the last price candle on this chart suggests that upside momentum is gaining strength.
Additionally, the SRSI indicator lines have continued upward ever since the last bullish crossover. Indications arising from trading indicators suggest that the uptrend remains intact. At this point, the market can be regarded as heading towards the next psychological level at the 0.6700 mark. However, traders should monitor the reaction that may be sparked by the emergence of the US CPI data.
EURJPY: Bullish
The EURJPY market has steadily advanced towards the psychological milestone at the 170.00 level. Initially reaching the 171.00 mark, the market retraced as it encountered strong resistance in that price range. Currently, the market is approaching the resistance zone near the 170.00 threshold.
Price movement remains above the Guppy Multiple Moving Average lines, indicating bullish momentum.
The latest price candle exhibits a notable size, with a longer lower shadow compared to the upper one. Additionally, the Stochastic Relative Strength Index (SRSI) lines continue to ascend into overbought territory, reaffirming the prevailing upward trajectory. Consequently, there is a strong likelihood that the market will once again surpass the 170.00 mark shortly.
USDJPY: Bearish
While the USDJPY market remains generally bullishly biased due to some counterbalancing side effects from the JPY side of the market, the ongoing session as of the time of writing has printed a downward correction. However, this seems minimal at this point. Should the bearish sentiments surrounding the USD persist, the downward correction may grow stronger.
This major FX market remains above the GMMA indicator lines. Similarly, the SRSI indicator lines can be seen rising steeply upwards, despite the downward correction in this market. Should the anticipated US CPI data arrive favorably, price action may breach the resistance at the 157.00 mark and advance toward the 158.00 mark.
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