The major available fundamentals concerning the US dollar have conferred a restraint on the greenback. This has hurt major FX pairs with the US dollar as the base currency. Meanwhile, other major FX pairs with the US dollar as the quote currency has capitalized on the dollar’s weakness to print some gains. Let’s dive into the analysis of each of these pairs.
EURUSD: Bearish
The EURUSD has previously fallen under strong headwinds, pushing major FX towards the technical baseline at the 1.0700 price level. A moderate upside followed over the past two sessions, but the rebound appears to have cooled in recent sessions. A more cautious mood surrounding the EUR has also assisted the regression.
Price action remains below the Exponential Moving Average (EMA) curves, with all the EMA lines crossed above price activity. The MACD lines are still proceeding downward below the equilibrium level, despite the pale red appearance of their bars. Therefore, it appears that price action will likely revisit the technical support at the 1.0700 mark.
GBPUSD: Bullish
The GBPUSD has managed to stay afloat above some technical landmarks. Price movement in the ongoing session seems to have gained more momentum, pushing the major FX pair further through the 20-day EMA lines. This appears to have been aided by poorer-than-expected US Retail Sales data and comments from Fed officials.
With price action now above the 20-day EMA line, the market may proceed higher with increased momentum. The MACD lines are still above the centerline and appear to be taking a sideways trajectory at the moment. The latest MACD bar is now pale red, indicating that downward forces are weakening. Provided that more favorable fundamentals remain or arise, the market may extend toward the 1.2800 mark in subsequent sessions.
USDCHF: Bearish
The USDCHF turned bearish following a failed attempt to revisit the technical resistance at the 0.9200 price level. The market also tried to pick up from the 0.8900 mark but was muscled down by headwinds. Consequently, this extended the downward retracement further below the EMA lines.
All the EMA lines are now converging above the price action. The minor correction seen in the ongoing session is therefore under strong downward pressure. The MACD indicator bars are now solid red and appear below the equilibrium level as the indicator lines continue trending downward. Therefore, the market seems poised to reach the 0.8800 mark.
USDCAD: Bearish
The USDCAD market has continued in a slow and steady downward correction, typical for major FX pairs with USD as their base currency. Nevertheless, the current session remains above the 20-day EMA line, despite the downward correction. The MACD indicator lines are now falling towards the equilibrium level.
Interestingly, the MACD lines are convergent above the equilibrium level, with the indicator bars vanishing into the equilibrium level. This suggests that downward forces could gain more momentum, potentially pushing the market further lower. The market may fall below the technical level at the 1.3700 mark.
AUDUSD: Bullish
Bullish momentum has increased in the AUDUSD market, as was more evident in the previous session. This momentum has continued in the ongoing session, with price action proceeding further past the Fibonacci Retracement level of 38.20.
The market is still rising above the 20-day EMA lines, and the MACD lines are converging for a bullish crossover above the equilibrium level. The last two MACD bars below the equilibrium level are now pale red, suggesting that price action may rise further toward the technical resistance at the 0.6700 price level.
EURJPY: Bullish
Market sentiment for the EURJPY favors a continued upward retracement. The HCPI and improving economic outlook are reinforcing the market’s upward momentum. Currently, the session is trading above the 20-day Exponential Moving Average (EMA), which is positioned above all other EMA lines.
The Moving Average Convergence Divergence (MACD) indicator lines are nearing a bullish crossover at the equilibrium level. Additionally, the histogram bars are steadily shortening, signifying that bearish pressure is weakening. Consequently, traders can maintain a target of 171.00 for this market.
USDJPY: Bullish
The USDJPY has been on a cautious upside trajectory since it took off around the 154 price level, rising through the technical resistance at the 156 mark. However, upside forces seem to have cooled, resulting in a minimal downward correction in the ongoing session. Nevertheless, the price level remains broken as price activity stays above that level of technical support.
The MACD lines have delivered a bullish crossover above the equilibrium level, though the ensuing lines seem to be struggling to take a more direct upside trajectory. This may be rooted in the fundamentals surrounding the US dollar. Should more favorable fundamentals arrive for the US dollar, the market may accelerate toward the 158.00 price level.
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