The bullish momentum in the USD has exerted a noticeable effect on most of the major FX pairs. Some pairs have seen a significant positive effect, while others with counterbalancing forces have seen a reduced effect. Let’s further examine each of these pairs to gain a clearer insight into future price movements.
EURUSD: Bearish
While the Euro side of the market has some favorable fundamentals, it appears that the USD side seems to be stronger and noisier on a fundamental basis. This has caused this major pair to produce a minimal bearish correction, keeping the market hovering around the 20-day Exponential Moving Average (EMA) line.
Also, the Moving Average Convergence Divergence (MACD) line below can be seen maintaining its bullish crossover below the equilibrium level. Although a minimal downward correction has been seen in the ongoing session, the bars of the MACD maintain that upside forces are intact, pushing the market toward the 1.0800 level.
GBPUSD: Bearish
Despite the unfavorable conditions surrounding the Pound, such as the BoE’s dovish pause and the UK general elections, it can be seen that the USD has failed to develop strong bearish momentum against it. This is evident as the ongoing session sits atop the 20-day EMA line and above all the EMA lines on this chart. Also, the size of the price candle shows that only a tiny downward correction has developed despite the strong tone in the US dollar.
Meanwhile, the MACD continues to converge at the equilibrium level. The bars of the indicator can be seen staying pale red, suggesting that downward forces are weak. At this point, traders may choose to rely on either fundamentals or technical indications. Technically, the market will head towards the 1.2600 level should the support at the 20-day EMA line fail.
USDCHF: Bullish
The USDCHF has extended its upside correction through a technical resistance level at the 0.9000 mark. At the same time, price action has continued through the Fibonacci Retracement level of 23.60.
Although a closer look at the price action reveals that the upside momentum seems cooler since breaking above the 23.60 Fibonacci Retracement level, the MACD lines are still rising upwards into the equilibrium level, with the indicator bars growing taller over subsequent sessions. While trading activities remain above the EMA lines, traders can still target the 0.9100 mark.
USDCAD: Bullish
The Canadian dollar seems to possess a counterbalancing fundamental that plunged this major FX pair in the previous session and has retarded its upside gains in the ongoing session. The last price candle on this chart has appeared solid green with a very short body, keeping USDCAD’s price above the 50, 100, and 200-day EMA lines.
Meanwhile, the MACD indicator had earlier attempted a bearish crossover, which was aborted as the indicator lines continued trending upwards. Therefore, it could be anticipated that the market will resurface above the psychological resistance of 1.3700, given that the USD is still leading in the battle.
AUDUSD: Bullish
Similar to what was seen earlier in the USDCAD market, this major FX pair has demonstrated that it may likely continue upwards against downward forces. Here, buyers have continued to lead in this market for the second consecutive session.
Although the pair has seen a contraction due to counterbalancing forces from both sides of the market, it continues on an upward path. Also, it keeps trading above the EMA lines while still below the 0.6700 price level. The Stochastic Relative Strength Index (SRSI) lines have a general upward trajectory despite a deflection on the leading line of the indicator. Consequently, traders can stay focused on the 0.6700 price level.
EURJPY: Bullish
Recent tailwinds have driven the EURJPY market through several technical resistance levels at 171, 172, and 173. However, today’s trading activity indicates that the market might be poised for further upward movement. The current session’s price candle is green and positioned above all the EMA lines.
Additionally, the current session shows no signs of downward pressure. The SRSI indicator lines have climbed deeply into the overbought region, suggesting they may remain there as dictated by market forces. Consequently, this will likely see the market rise towards the 175.00 threshold.
USDJPY: Bullish
The USDJPY has finally broken the 160 threshold. This seems mostly aided by the momentum gain in the USD. This has further extended the upside correction above all the EMA lines, offering a strong bullish impetus to the market. Also, the ongoing session has produced considerable gains, as evidenced by the appearance of the corresponding price candle.
The SRSI indicator lines can be seen merged, but they maintain a slight upside bearing near the 100 level of the indicator. Therefore, market participants may still want to target the 162.00 level, considering the bullish momentum of the US dollar.
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