The greenback has been in a good mood since the end of September. This mood has significantly impacted most of the major FX pairs. For some, they have been under sustained bearish pressure, while others have been under sustained bullish pressure. Let us further examine the market to see where things may head shortly.
EUR/USD: Bearish
Although the EURUSD market has assumed a subdued outlook, it could be seen that the Euro seems to have gathered some strength against the US dollar. This has resulted in the appearance of a green price candle for the ongoing session as soon as price action tested the 1.0400 price level as support.
Nevertheless, price action remains below all the Moving Average (MA) lines on the chart. Meanwhile, the Stochastic Relative Strength Index (RSI) lines are pointed upwards, with the lead line having a deflection around the 50 level of the indicator. Technically, this hints at vulnerability. Therefore, the market may plunge back below the 1.0400 price level subsequently.
GBP/USD: Bearish
The US dollar has maintained a stronger stance against the British pound. As a result, price action for this major FX pair has been steadily retracing lower price levels, although at reduced momentum. The corresponding price candle to the ongoing session currently tests the support at the 1.2500 price level. Also, price action lies below all the MA lines.
Also, the Stochastic RSI lines can be seen converged for another downward crossover at the 20 level of the indicator. Consequently, it appears that price action may progress downward through the 1.2500 support level toward the 1.2450 price level.
USD/CHF: Bullish
The USDCHF market can be seen sustaining at high altitudes. Here, price action has been hanging above all the MA lines. The major FX pair rebounded upward in the past two sessions. The previous session stayed green but saw a significant decline in bullish momentum. The last price candle is red but has a very tiny body, which indicates that bears are quite weak in the session.
In addition, price action stands above all the MA lines, and the Stochastic RSI lines can be seen above the 60 mark on the indicator. The ensuing lines of the Stochastic RSI indicator can be seen projected upwards. Technically, this points out the possibility of price action extending upside corrections through the 0.9000 price level and toward the 0.9100 threshold.
USD/CAD: Bullish
The USDCAD market has also been seeing sustained bullishness since late September. This has brought the market through the 1.4000 threshold and to higher price levels above the mentioned price level. The ongoing session has recorded a notable price increase as presented by the ongoing session. As a result, the pair now trades at a price last seen four sessions ago.
Also, price activity remains above all the MA curves on the chart. However, the Stochastic RSI lines are falling toward the 50 level despite the upside rebound. Nevertheless, this market maintains a high probability of continuing upwards, seeing that price action lies above all the MA lines. Subsequently, price action here may approach the 1.4500 resistance level.
AUD/USD: Bearish
AUDUSD has been under sustained bearish pressure since the greenback gained bullish momentum toward the end of September. Consequently, the major FX pair has been spiraling downwards, making lower lows. More recently, the support at 0.6200 has been standing strong. But with price action below all the MA lines, price action is on its way for a second retest of the support at the 0.6200 price level.
Meanwhile, the Stochastic RSI lines have now crossed just above the 20 level of the indicator. As a result, the ensuing lines can be seen pointed sideways. Therefore, market participants can expect the market to hit 0.6200 for a breakthrough.
EUR/JPY: Bullish
The EURJPY market has been on an upward trajectory ever since the market rebounded off the support near the 156.00 threshold. The market initially progressed upward in a narrow price channel. Meanwhile, volatility had increased, and the price action for this major FX pair has eventually escaped out of the upside-sloping price channel.
The last price candle can be seen punching its way through the 164.00 threshold level, which is up ahead. Consequently, the price of this pair now tests the 200-day MA lines as resistance. Also, the Stochastic RSI lines can be seen merged in the overbought region but maintaining a slight upward trajectory. So, traders can anticipate that price action may attempt to find support above the 164.00 threshold for more thrust.
USD/JPY: Bullish
USDJPY continues to ride the bulls. The upside correction in the market has continued to correct towards higher price levels generally since late September. However, a significant downward retracement occurred toward late November, which was halted around the 150 price level. The major FX pair had resumed an upward path following a consolidation period around the mentioned price level.
The upside correction had extended through multiple price levels with the momentum appearing moderately strong in the ongoing session given the appearance of the last price candle. Also, the Stochastic RSI lines have delivered yet another upside crossover in the overbought region. Considering the position of price action, traders can aim at the 159.00 threshold level.
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