The US dollar has found demand as the CPI inflation data arrived as expected by the market. Even as of the time of writing, the effect of the dollar’s attractiveness can be seen. Consequently, this has assisted some major FX pairs to cross key levels as they extend their upward or downward corrections.
EUR/USD: Bearish
The EUR/USD market has been dominated by bears. The market previously crossed above the 20-day Moving Average (MA) line. However, downward forces regained control and forced the market back below the 20-day MA line in the previous session.
Meanwhile, the improved sentiment on the USD side of the market has further mounted bearish pressure on the pair, advancing downward retracements for the fourth consecutive session. Likewise, the Stochastic Relative Strength Index (RSI) lines have delivered a bearish crossover in the overbought region. The leading line of the indicator has continued to progress through the 80 mark of the indicator. Therefore, market participants can initially target the 1.04500 mark.
GBP/USD: Bearish
The GBP/USD market has been able to sustain above key technical levels. However, the current session has landed a bearish retracement. Nevertheless, the market still trades at a considerable distance above the 20-day MA curve. The ongoing session has delivered a minimal downward retracement, but price action stays above the 20-day MA line.
The Stochastic RSI lines have still reached the high into the overbought region. These lines are merged and are now trending sideways. Interestingly, this indicator line hasn’t delivered a clear downward crossover, despite the downward retracement on the price chart. Consequently, traders can stay positive about a price retracement through the 200-day MA (1.2820) as this will further strengthen bullish sentiment in the market.
USD/CHF: Bearish
The USDCHF pair has kept to an upward trajectory for three straight consecutive sessions. The ongoing session has delivered a continued upward retracement for the third consecutive session. Through the last price candle on the chart, the market has risen further above the 0.8793 threshold level.
Likewise, the market stays positive about breaching the 20-day MA line as resistance. Also, the Stochastic RSI lines can be seen rising out of the oversold region following a crossover there. Therefore, traders can still aim at the $0.8900 mark, since upside forces are still in the lead in this market.
USD/CAD: Bearish
The USDCAD pair has seen a sharp downward retracement in today’s trading session. This seems strange since it has occurred at a time when the greenback has found some strength. Therefore, the Canadian dollar seems to have and currently attracts more demand than the US dollar.
Be that as it may, price action for this major FX pair stays above all the MA lines. Furthermore, the Stochastic RSI has converged for a bearish crossover. Yet, even the convergence of these indicator lines remains in the overbought region. As such, this suggests that the trend may regain traction and price action continue upwards towards and through the 1.4200 mark.
AUD/USD: Bearish
The AUD/USD pair stays largely depressed. This major FX pair has precisely risen past the 20-day MA line but soon lost the found momentum. What’s more, is that volatility seems quite significant and has been assisting bearish traders to keep recording gains. Price action remains below all the MA lines as the ongoing session stays bearish.
The mentioned price candle can be seen appearing contracted despite being red, indicating that bears have remained dominant. Yet, the contracted appearance suggests that upside forces are putting up a fight. Consequently, the terminal part of the Stochastic RSI lines is pointed upwards but below the 50 mark of the indicator. Nevertheless, the position of price candles below the MA lines suggests that the market will likely progress towards the 0.6300 price level.
EUR/JPY: Bullish
Bulls in the EURJPY are fighting hard to stay in the lead. This is revealed through the appearance of the last price candle on the chart. The mentioned price candle looks contracted, despite its green appearance. Its contracted body suggests that price forces are in a face-off.
While the price action has been bullish for the most part of the past six sessions, this major FX pair trades below all the MA lines. Meanwhile, the Stochastic RSI lines are still rising upwards into the overbought region. However, it is worth noting that the RSI lines seem hyper-extended and therefore suggest that bulls may be running out of steam soon. Therefore, a target at the 160.50 mark seems a fair target in this market.
USD/JPY: Bearish
The USDJPY market has continued to make an upside recovery. The market has been retracing higher grounds since the past two sessions. The last price candle can be seen testing a rise above the 20-day MA curve. Should this eventually occur, upside forces may grow stronger.
The Stochastic RSI lines can be seen rising strongly into the overbought region of the indicator. Also, fundamentals support the opinion that this major FX pair may progress upward since the dollar has attracted some bids due to the positive effect of the US CPI on the greenback. Therefore, traders can aim at the 154.00 threshold as a fair target.
Get free access to our lifetime VIP membership. Join us here.
Leave a Reply