The US dollar has continued its post-election rally. The greenback has continued to strengthen as the BEA reported a GDP growth of 2.8% annually. Also, the CPI has revealed that the Fed has been successful in curtailing inflation. This has fueled the dollar against its pairs among the major FX pairs. Let’s get into the details of each of the pairs below.
EUR/USD: Bearish
The EUR/USD has continued a strong downward correction since its price action failed to rise above the technical resistance at the 1.0800 level. The downward correction has been strengthened by the arrival of favorable fundamentals from the US. This has kept this major FX pair plunging toward the next psychological support at the 1.0500 price level.
Price activity now lies below all the Moving Average (MA) lines. Also, the Stochastic Relative Strength Index (RSI) lines have fallen deeply into the oversold region. Given the general sentiment in this market, traders can brace for a potential decline towards the 1.0500 price mark.
GBP/USD: Bearish
The momentum gain in the US dollar market has been sufficient to fuel headwinds in the GBP/USD market as well. For this major FX pair, downward forces have been in control for the past four sessions. The ongoing session has also appeared bearish, making a total of five sessions of downward momentum.
Price action for this major FX pair now lies clearly below all the MA lines. Likewise, the Stochastic RSI lines have continued to fall sharply into the oversold region of the indicator. As a result, traders can aim for the 1.2650 and 1.2600 price levels as potential targets.
USD/CHF: Bullish
The USD/CHF pair has resumed its upward correction as expected. This major FX pair had consolidated sideways above the 0.8600 price mark for a while but regained upward momentum five sessions ago. Today’s trading activity saw the pair rise through the 200-day MA line.
Consequently, this FX pair now trades above all the MA lines on the chart. Also, the Stochastic RSI lines have risen high into the overbought region. The line of this indicator maintains an upward trajectory. This market maintains a bullish characteristic and may hit the 0.8900 mark. However, traders should be cautious as the market may see a pullback given the overbought condition as revealed by the Stochastic RSI.
USD/CAD: Bullish
The USDCAD pair has also maintained a bolstered bullish stance. Consequently, it appears that investors in this market have responded to the positive fundamentals that have arrived today for the US dollar. This has led to significant price increases in today’s trading. Consequently, this market is now on the brink of breaking the 1.4000 resistance level.
This keeps the pair’s price action above all the MA lines. Interestingly, the lines of the Stochastic RSI indicator have delivered an upward crossover in the oversold region. Additionally, it should be noted that the lines of this indicator aren’t hyper-extended despite the considerable price increases that have been recorded in this market. Therefore, it seems very possible that this market will rise past the 1.4000 mark and perhaps toward the 1.4050 mark.
AUD/USD: Bearish
AUD/USD has continued its bearish path for the past three sessions. As a result, the ongoing session makes it the fourth consecutive session since the downward correction began. Looking at the bearish momentum in this major FX market, one can perceive that downward forces are quite strong. As a result, the major FX pair ran through the support at the 0.6545 level.
Consequently, this major FX pair continues to trade below all the MA lines on the chart. Likewise, the Stochastic RSI lines have kept on falling sharply into the oversold region. Also, one must look at the behavior of the RSI lines and from it deduce that downward forces are fairly strong. Consequently, this suggests that the market may head toward the 0.6450 mark shortly.
EUR/JPY: Bearish
The EURJPY pair has finally succumbed to bearish pressure following a minimal upward rebound above the 163.50 price level. Today’s session has recorded a price decline, and price movement is on the brink of breaking the support at the 163.50 price level.
With the major FX pair’s price action now below three out of four MA lines, it seems very likely that the market may fall below this support level. Also, the crossover of the Stochastic RSI lines is now tending sideways, hinting that the market is slowly giving in to downward pressure. Consequently, traders in this market should expect that price action may fall below this support level shortly and towards the 163.00 price mark.
USD/JPY: Bullish
The USD/JPY market has significantly benefited from the momentum gain in the US dollar. The pair has been able to extend its upward rebound off the support at the 152.00 threshold for three consecutive sessions. This has aided price action’s upward retracement above all the Moving Average (MA) lines. Meanwhile, the MA lines continue to trend below price activity.
Also, the Stochastic Relative Strength Index (RSI) indicator has performed an upside crossover in the oversold region. The resulting lines of this indicator are rising sharply but not exaggeratedly from the oversold region. Technically, this portrays the strength of the bullish sentiment in this market. Therefore, it doesn’t seem overambitious for traders to eye a hit at the 156.00 price level.
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