Some of the anticipated fundamentals for the week, such as the Jolts Jobs report, have failed to aid the US dollar in printing gains. Consequently, this has had a noticeable effect on some of the major FX pairs. More volatility can be anticipated as additional data, such as PMI, ISM, and S&P reports, are set to roll out today. In the meantime, let’s examine the major FX pairs one by one.
EURUSD: Bullish
The EURUSD continues to hover around the 1.0900 mark. The past two sessions saw price action break through the resistance at that level. However, it appears that price action hit some targets, resulting in a downward correction in the following session. The market seems to have assumed a more cautious stance, considering the size of the last price candle on this chart.
The mentioned price candle is green but has kept the market above the 50% Fibonacci Retracement level. Likewise, the Stochastic Relative Strength Index (SRSI) lines can be seen retaining an upward trajectory while the leading line has gone past the 70 level of the indicator. Consequently, one can suggest that price action may still proceed upwards, at least hitting the target at the 1.0900 mark once more.
GBPUSD: Bullish
While today’s trading activity has presented minimal recovery from yesterday’s downward correction, this major FX pair continues to hover around the 1.2800 price level. The mentioned downward correction occurred yesterday after price action broke through the 1.2800 price level in the previous session. Nevertheless, price action remains above most of the EMA lines.
Meanwhile, the Moving Average Convergence Divergence (MACD) lines have risen above the equilibrium level. However, most of the MACD bars appearing above the equilibrium level are now pale red. Consequently, this implies that upside momentum is weak at the moment. Therefore, relevant fundamentals will play key roles in determining if the market will extend past the 1.2800 mark in subsequent sessions.
USDCHF: Bearish
The USDCHF pair has crashed heavily since last Thursday. The decline continued in the previous session as Jolts Jobs data arrived on a disappointing note. Today’s trading activity has brought a break to the free fall in the market as price action corrected minimally off the 38.20% Fibonacci Retracement level.
Nevertheless, the market continues to trade below the EMA lines. Likewise, the MACD lines are now below the equilibrium level. Technically, this suggests that the overall trend in the market is bearish. Therefore, this makes the witnessed upside correction vulnerable. Traders can expect this major FX pair to hit support at the 0.8850 price level.
USDCAD: Bearish
USDCAD price action tested the resistance at the psychological level of 1.3700 yesterday. However, downward forces caused the market to contract off that mark, but the FX pair continued to trade above the EMA lines. Meanwhile, today’s trading activity has appeared bearish, yet the market stays somewhat oriented towards the 1.3700 mark.
At the same time, the MACD lines can be seen converging for what seems like a bullish crossover at the equilibrium level. Technically, this shows that tailwinds are fiercely competing for control of price movement. Therefore, it seems possible that price action may revisit the 1.3700 price level. Traders should, however, monitor fundamentals emerging from the US side to that effect.
AUDUSD: Bullish
The AUDUSD has considerably benefited from the bearish fundamentals surrounding the US dollar. The Australian dollar seems to have been performing significantly better than the US dollar. This saw the major FX pair print more considerable profits as opposed to what is seen in other counterparts.
The last price candle on the chart can be seen as a medium-sized price candle. Also, it has appeared above the EMA lines. The MACD lines have come closer together while above the equilibrium level. The last bar on the MACD indicator is quite short and appears pale red, pointing out that upside forces are having a notable impact on the market. This has increased the fighting chances for upside forces in this market, and the market may approach the 1.3700 mark once more from here.
EURJPY: Bullish
Price action faced minimal rejection in the previous session. Today’s trading activity, however, has witnessed some upside corrections, while the price of the pair is below the 20-day Exponential Moving Average (EMA) lines. Meanwhile, we can see the Moving Average Convergence Divergence (MACD) lines above the equilibrium level. However, the mentioned indicator lines have delivered a bearish crossover above that equilibrium level.
The MACD bars are solid red, indicating that bears have strengthened their hold. Be that as it may, the observed upside correction suggests that the JPY has weakened, while the Euro side anticipates key data that may propel the market further upwards. Therefore, this major FX pair may leap towards the 171.00 price level soon.
USDJPY: Bullish
USDJPY had previously dipped considerably over the past two sessions. This seemed to have occurred when the JPY gained some traction earlier this week. This resulted in the major FX pair correcting towards lower price levels. However, the current session has shown that upside forces are still trying to keep the market in an overall uptrend.
This can be perceived as price action correcting the upside-sloping trend line on this chart. Meanwhile, the MACD lines can be seen still falling towards the equilibrium level. Also, price action remains below the 20-day EMA lines but above the 50, 100, and 200-day EMA curves. This suggests that upside forces will likely cause the market to approach the 157.00 mark.
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