As the day seems packed with impactful economic data, traders of most of the major FX pairs seem to have switched into a cautious mood. This has allowed major FX pairs to breach downward or upward corrections. However, let’s try to see what may ensue in each of these markets later.
EURUSD: Bullish
The EURUSD market has been correcting downward in previous sessions. The downward correction has been steep and slow at some points. Nevertheless, today’s trading activity has seen a pullback to that effect as the market hit the 1.0727 mark in the previous session. The Exponential Moving Average (EMA) lines can be seen converging above recent price candles.
Also, the Moving Average Convergence Divergence (MACD) lines have continued to fall below the equilibrium level. The bars of the MACD can also be seen appearing red below the equilibrium level. Meanwhile, the magnitude of the upside rebound seen in the ongoing session seems overwhelming and may soon give way to a continued downward retracement toward the 1.0700 mark and may extend through it.
GBPUSD: Bullish
The GBPUSD market has continued to print minimal profits since the start of the week. However, today’s price movement has seen the pair rise further above the 20-day EMA lines. As such, this places the pair at an advantage should the US CPI come weaker than market anticipations, while GBP industrial production data arrives as expected.
This will cause upside forces to gain more traction. Meanwhile, the MACD indicator lines are already above the equilibrium level. Likewise, the bars of the indicator below the equilibrium level are now turning pale red. This suggests that upside forces may gain traction with more ease towards and through the 1.2800 mark.
USDCHF: Bearish
In the USDCHF market, it appears that market forces are engaging each other in mid-air. It could be seen that ever since the market rebounded off the support level at the 0.8900 mark, upside momentum has dwindled gradually. The last price candle in this market can be seen appearing very tiny but red.
Consequently, this suggests that downward forces have claimed the upper hand after a tough battle. Nevertheless, the pair keeps trading above just one out of four of the EMA lines. Also, the MACD lines have a more sideways orientation below the equilibrium level. Technically, this suggests that the market may resume falling towards the support level at the 0.8900 mark.
USDCAD: Bearish
The USDCAD market has been bullish in the past two sessions. However, the prevalent cautious mood in this market can be seen to have impeded upside progress in today’s trading session. Today’s trading activity has seen a downward correction as of the time of writing.
Nevertheless, the major FX pair continues to trade above all the EMA indicator lines, despite the downward correction. Also, the MACD lines are still generally retaining an upward trajectory. However, the MACD has revealed that the upward momentum is getting weaker through the pale green color of its bars. Traders might still want to maintain a bullish stance since the market may still move towards the 1.3800 level.
AUDUSD: Bullish
AUDUSD price action experienced a steep crash about four sessions ago. However, a minimal upward rebound occurred afterward, which hasn’t progressed significantly upward. Price action has only made it past all the EMA lines below the 20-day EMA. The MACD indicator lines are still above the equilibrium level.
These lines can now be seen trending slightly sideways, while the bars of the indicator are now appearing pale red below the equilibrium level. Nevertheless, the ongoing session remains bullish, going by the appearance of the corresponding price candle. Going by the indications coming from technical indicators, we can see that this major FX has the potential to continue upward toward the 0.6650 mark in the meantime.
EURJPY: Bullish
Ever since price action fell below 170.00 on the EURJPY daily market, it could be observed that price volatility has been high. The current session is bearish, but the price of the pair hasn’t moved downward that much from where it was in the previous session. As a result, the pair continues trading above most of the Exponential Moving Average lines (EMA).
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator lines continue to fall towards the centerline. In addition, the last two bars on the MACD are solid red, indicating that downward forces are strong. Today’s session has appeared green, but as a dash-shaped price candle, it can only be assumed to delay the inevitable downward correction towards the 167.50 mark.
USDJPY: Bullish
While some of the major FX pairs with the US dollar as their base currency have seen some degree of downward correction, the USDJPY stands among those that have continued on their upside track. The basis for this may be embedded in fundamentals on the JPY side of the market. Since the beginning of the week’s trading, USDJPY has continued upward while trading above all the EMA lines. The current session has continued to propel the market towards medium-term resistance at the 158.50 level. At the same time, the MACD indicator lines can be seen converging and seem to have delivered a bullish crossover above the equilibrium level. Consequently, this suggests that the market may still progress further towards or through the mentioned 158.50 resistance level.
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