The US dollar has been recovering due to improvements in the US PMI and US yields. This recovery is occurring while the Fed is likely to maintain a restrictive stance concerning the interest rate. The gathered fundamentals have supported the recovery of the US dollar, resulting in continued upside traction for some of the major FX pairs.
EURUSD: Bullish
While the EURUSD market has fallen under considerable pressure from the recovering US dollar, the pair seems to have staged considerable resistance to further price declines. As the week’s trading draws to a close, upside forces have kept the pair above most of the Guppy Multiple Moving Average (GMMA) lines.
Meanwhile, the Stochastic Relative Strength Index (SRSI) indicator lines are falling exaggeratedly into the oversold region. However, the last price candle on the chart for this FX pair suggests that upside forces are staging a somewhat strong resistance that may extend toward the 1.08500 mark ahead of the weekend.
GBPUSD: Bullish
The GBPUSD pair is also one of the major FX pairs gaining traction against the strong fundamentals of the USD. The pair has rebounded off the technical support level at the 1.2700 price level. The size of the corresponding price candle in the ongoing session presents moderate profits. Consequently, the market has resumed trading above the GMMA indicator curves.
Nevertheless, the SRSI indicator lines have a rather bearish opinion of the market. The lines of this indicator can be seen falling towards the 80 mark. However, a closer observation of the leading lines of this indicator shows a slight deflection, reflecting the observed price recovery. Traders can still eye an upside correction towards or through the 1.2750 mark.
USDCHF: Bullish
The USDCHF pair continues to benefit from the improving fundamentals surrounding the US dollar. Observing the price candle from the previous session shows that market forces are battling fiercely, given the contracting body of these price candles.
Nevertheless, the market can be seen progressing upward despite the perceived opposition. Meanwhile, the SRSI indicator lines are still projected upward above the 80 mark. The deflection on the leading line of this indicator only reflects contractions in the market. Market participants can still eye the 0.9200 mark ahead of the weekend break.
USDCAD: Bearish
USDCAD has risen through the 1.2700 price level, but a downward correction can be seen, bringing price action to test the uppermost lines of the GMMA. This FX pair continues to trade above the GMMA lines. The SRSI indicator lines are still rising into the overbought region.
This suggests that the market has a higher chance of recovering from the bearish correction in the ongoing session. Consequently, traders can anticipate a continued upside correction toward the 1.2750 mark and possibly beyond it in the new week.
AUDUSD: Bearish
The AUDUSD has been on the receiving end of the recovery effect of the US dollar. This has placed the FX pair under significant pressure in recent sessions. However, today’s trading activity has seen a rebound from a technical price level at the 0.6600 mark. This kept the pair trading at the 0.6616 mark, pushing the market towards the green GMMA lines.
However, the SRSI lines are falling very sharply, deep into the oversold region. Nevertheless, the rebound shows that upside forces may pick up the challenge of propelling the market further upwards toward the 0.6650 mark.
EURJPY: Bullish
The EURJPY continues to march upward towards more elevated price levels. The market has broken the psychological resistance at the 170.00 price mark and continues above the green GMMA lines, indicating an uptrend. Meanwhile, the SRSI lines have fallen sharply into the oversold region.
This seems quite exaggerated, as the only downward correction occurred during the past two sessions. The current session has produced moderate price increases, returning the market to its previous upside track before the recent correction. The market has a higher potential for extending the upside correction towards the 172.00 mark.
USDJPY: Bullish
The USDJPY market has recovered significantly from the previous bearish path nine sessions ago. The market has progressed on an upside path since then. The ongoing session has further printed more profits and advanced the market above the 157.00 price mark.
Likewise, an upside crossover can be seen on the SRSI indicator lines, continuing further upwards into the overbought region. The market will therefore approach the technical price mark at the 158.00 mark ahead of the weekend break, potentially extending into the new week’s trading activities.
Get free access to our lifetime VIP membership. Join us here.
Leave a Reply