The US dollar has continued its impressive run, supported by the improved sentiment in US stocks and yields. This has generally maintained pressure on most of the major FX pairs, preserving the prevailing market trend. As a result, one may still assume that the overall trend will persist in some of the major FX pairs, despite experiencing brief retracements in the opposite direction.
EUR/USD: Bullish
The EUR/USD has been under pressure from headwinds for approximately three weeks, pushing this major FX pair to rebound off a two-month-old support level at 1.0784. The current session has witnessed some upside retracement, lifting the pair above 1.0802. However, price action remains below the middle band of the Bollinger Bands indicator.
Meanwhile, the Stochastic Relative Strength Index (RSI) has shown a downward crossover below the 20 mark. Currently, the indicator’s trajectory suggests the market may move upward. However, any upward movement below the middle band of the Bollinger Bands should be viewed as a retracement.
GBP/USD: Bullish
The GBP/USD has also experienced an upward retracement in today’s trading session. The current price candle suggests that bullish forces are attempting to gain momentum near the 1.2960 threshold. The most recent price candle is green and prominent but has formed below the middle band of the Bollinger Bands. Additionally, the Bollinger Bands appear well-dilated, indicating healthy market volatility.
At the same time, the Stochastic RSI lines are moving upward after an upside crossover at the 20 mark. Nevertheless, with price action still below the middle band of the Bollinger Bands, the downward correction toward the 1.2800 price level could resume shortly.
USD/CHF: Bearish
The USD/CHF market has seen a significant upside retracement recently, lifting the market from support at the 0.8400 level to hovering around 0.8673. This major FX pair is now trading above the middle band of the Bollinger Bands indicator. However, price action is currently just below the 0.8673 mark. Although the Bollinger Bands project an upward trajectory, the upside momentum in the market seems to be fading.
Meanwhile, the Stochastic RSI remains in the overbought region but is now descending toward the 80 mark. This suggests that the ongoing upside retracement may face a strong challenge at the 0.8673 price level. Traders should monitor economic developments from the relevant economies for further momentum beyond this level.
USD/CAD: Bullish
The USD/CAD market has been undergoing an upward price correction since bouncing off support near the 1.3420 level. Despite some minor interruptions, the market has consistently rebounded. Currently, it appears to be encountering resistance near 1.3850, resulting in a sideways trend over the last two sessions.
However, trading remains above the middle band of the Bollinger Bands, which is slightly sloping upward, indicating a continued bullish trend. The Stochastic RSI is moving downward toward the 80 level, suggesting that the 1.3825 level could provide a strong base for price activity, allowing the upward correction to continue toward or beyond 1.3850 if confirmed.
AUD/USD: Bullish
The AUD/USD market has swiftly moved through several support levels recently. Price action in recent sessions has remained near the lower band of the Bollinger Bands, keeping the market below the middle band. Even the Bollinger Bands themselves are trending downward. Although the current session has seen some upside retracement, the overall market trajectory remains unchanged.
On the other hand, the Stochastic RSI lines are pointing upward after an upside crossover. However, a close examination of the indicator lines reveals some instability, leaving the current price movement vulnerable. As a result, this major FX pair may be heading toward the 0.6600 threshold.
EUR/JPY: Bearish
The EUR/JPY market has also experienced some notable upside corrections recently. However, today’s session has deviated from the previous bullish trend following the significant price increase in the prior session. This major FX pair surged through resistance at 163.50 in the previous session, but the current session has seen a noticeable downward retracement.
Nevertheless, the pair continues to trade well above the middle band of the Bollinger Bands. The Stochastic RSI lines are above the 60 mark, maintaining an upward trajectory. However, the leading line of the indicator has deflected, reflecting the ongoing downward retracement. Despite this, the market still holds the potential for further bullish gains toward the 166.00 price level.
USD/JPY: Bullish
Upside momentum has also led to a significant price increase in the USD/JPY daily market. The pair has been moving upward since price action tested the psychological support level at 140.00. Consequently, the Bollinger Bands are now trending upward, reflecting the recent market trajectory. The most recent price candle has brought the pair back below the technical support at the 152.00 level.
The Stochastic RSI lines remain in the overbought region but are now descending toward the 80 mark following a sharp downward crossover. However, considering the pair’s current position, the general market trend may still be considered upward. Traders can potentially follow the trend toward the 154.50 level.
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