Trading activities draw to a close today with the major contributors having set the tone for the major FX pairs. It could be observed that the US dollar is maintaining stability, thereby allowing its counterparts to drive the market. Nevertheless, we can see that more moves will still be seen today, both on the fundamental and technical parts of the market. So, let’s dive into each of these pairs.
EUR/USD: Bullish
The EUR/USD pair has only been able to print minimal profits since the previous session. This seems largely because fundamentals from the Euro side haven’t delivered much impetus to the market. However, today, the pair has risen past the 20-day Exponential Moving Average (EMA) lines. The 50 level of the Fibonacci level has proved to be strong as the market contracted downward off it in the previous session.
Likewise, the Stochastic Relative Strength Index (SRSI) lines can be seen converging for a bullish crossover in the oversold region. This shows that price action may find it difficult to break unless supported by favorable fundamentals from the Euro side or US PCE data. This will guide if the market will approach the 1.0900 level.
GBP/USD: Bullish
Even when the US dollar seems to be static on the fundamental front, the anticipation that the BoE will reduce interest rates has burdened the GBP/USD pair. As a result, this major FX pair has retreated below the 20-day EMA line. However, today’s trading activity has seen the market printing only a minor recovery.
This seems to be coming from the fact the sentiment surrounding the USD is getting more bearish ahead of the US PCE data. Be that as it may, this major FX pair still has upside potential, as its price activity largely remains above all the EMA lines. Likewise, the SRSI indicator lines can be seen converging in the oversold region. This points out that upside momentum may still grow stronger, propelling the market toward the 1.2900 price level.
USD/CHF: Bearish
The Swiss franc seems to have gained bullish momentum against the US dollar. This forced the major FX pair to retract to lower price levels. Price action in the market can be seen trying to stay above the technical support level at 0.8800.
The appearance of the last price candle on this chart suggests that traders are trying to stay cautious ahead of the US PCE data as it is likely to result in a rebound. Nevertheless, trading activity remains below all the EMA lines. Likewise, the SRSI indicator lines are still falling into the oversold region. So, should the PCE arrive weaker, the market may break the support level at the 0.8800 mark towards the 0.8750 price level.
USD/CAD: Bearish
The USD/CAD market burst its way through the 1.3800 resistance level. However, since the previous session, it can be seen that the market started printing moderate downward corrections. The ongoing session has appeared outrightly bearish given the color of the corresponding price candle. Nevertheless, this major FX pair continues to trade above the 1.3800 mark as well as above all the EMA lines.
Furthermore, the lines of the SRSI indicator can still be seen dragging at the 100 mark of the indicator. This suggests that price action may continue towards the 1.3900 should the PCE data roll in positive.
AUD/USD: Bearish
The AUD/USD daily market has fallen sharply towards lower price levels. Price action in this market has fallen through the 0.6700 baseline and a month-old support at the 0.6600 mark. With price action now below all the EMA lines, it appears that the market is already eyeing the 0.6500 support level.
Nevertheless, the ongoing session has printed moderate corrections. Likewise, the SRSI lines can be seen rising upwards out of the oversold region. However, it appears that the market is still anticipating fundamentals that may provide more impetus in this market towards the 0.6500 price level.
EUR/JPY: Bearish
The EUR/JPY market can be seen to have strongly retraced to lower price levels due to strengthening in the JPY market. This major FX pair seems to have settled around the 166.85 price level. Price action in this market can be seen trending sideways since the previous session.
Price action here has remained above the 200-day EMA line. Meanwhile, the lines of the SRSI indicator can be seen converging deep in the oversold region. However, the JPY side of the market will play a key role in determining if an upward correction will result from this market, as it will give the needed impetus towards the 168.00 price level.
USD/JPY: Bullish
The EUR/JPY and USD/JPY markets maintain close similarities. This can be seen through the most recent price movements in these markets. This hints that the Japanese yen has a strong bullish sentiment against both EUR and USD. The pair continues to trade just above the 200-day EMA line.
Also, the SRSI indicator lines can be seen approaching a bullish crossover in the oversold region. This implies that the market is still above the 152.00 price level. Also, the size of the body of the last price candles on this chart suggests that market forces are at loggerheads. While a continued downward correction toward the 152.00 support level seems possible, traders would like to see the USD PCE data for guidance.
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