The US dollar has been on a long-term uptrend, but today’s trading activity has seen a minor bearish retracement as the dollar failed to follow up on yesterday’s gain. Consequently, this has had a considerable effect on most of the major FX pairs. Some of the pairs seem geared to pursue lower supports ahead of the weekend break. Let’s take a closer look at each of them below.
EUR/USD: Bearish
The EUR/USD pair has been experiencing a freefall due to headwinds delivered to the market by the bullish momentum in the USD market. Previously, the market had rebounded off the support at the 1.0300 mark. As a result, price action has fallen far below all the Moving Average (MA) lines.
Also, the Stochastic Relative Strength Index (RSI) lines have delivered a bearish crossover below the 80 mark of the indicator. The resulting lines of this indicator have fallen very sharply downward. Technically, this suggests that price action may break parity (1.0000) subsequently.
GBP/USD: Bearish
The GBP/USD pair has fallen sharply below the 1.2500 threshold in the previous session. Consequently, this has occurred due to the USD’s strong momentum gain in the previous session. This caused a sharp downward movement in the ongoing session. It appears that bears have taken their foot off the gas pedal as the market rebounded upwards in the ongoing session.
Nevertheless, the rebound is minimal and as such keeps the major FX pair below all the MA lines. Also, the Stochastic RSI lines are falling towards the 0.00 mark of the indicator. Technically, this suggests that downward forces are still in the driving seat. Therefore, traders can stay geared towards the 1.2300 price level.
USD/CHF: Bullish
While the general upward trend remains in the USD/CHF daily market, the US dollar has witnessed a moderate decline in momentum. Nevertheless, price action for this major FX pair stays above all the MA lines.
Also, the Stochastic RSI lines are in the overbought region, but meanwhile, the downward retracement in today’s ongoing session has resulted in a convergence between the leading and lagging lines of the indicator. However, traders can stay bullish on this major FX pair as the overall trend seems to be targeting the 0.9200 price level.
USD/CAD: Bullish
The USD/CAD has been oscillating more frequently just above the 1.4342 price level. The mentioned price level has been a short-term support for this major FX pair for about ten sessions. The ongoing session has reflected the reduced bullish momentum in the ongoing session. Yet, price action in this market stays above all the MA lines on the chart.
Also, despite the price declines, the Stochastic RSI lines can be seen at a bullish crossover in the oversold region of the indicator. As a result, the overall market trend may resume, propelling the market further upward towards the 1.4500 price level.
AUD/USD: Bearish
The AUD/USD pair is another major FX pair that has benefited positively from the reduced bullish momentum in the US dollar. This has allowed the pair to now consolidate at the technical support at the 0.6200 threshold level. The last price candle is green but keeps the pair trading below all the MA lines.
Meanwhile, the Stochastic RSI lines can be seen rising significantly despite the minimal price movement in the market. As a result, the movement of the MA and the RSI indicator lines appears contrasting. Therefore, it seems that the market may head further south at the arrival of more positive fundamentals on the USD side of the market.
EUR/JPY: Bullish
The EUR/JPY market has seen a moderate decline over the recent sessions. However, this major FX pair has landed strong support. The corresponding price candle to the ongoing session has appeared green and contracted just above the initiated crossover between the 20- and 200-day MA lines.
Technically, this presents an interesting market. Simultaneously, the Stochastic RSI lines can be seen still falling sharply into the oversold region of the indicator. Nevertheless, the convergence of the mentioned MA lines suggests that market participants are likely to see an upward rebound in this market, breaking through the 162.00 price level, and resulting in even more price increases.
USD/JPY: Bearish
The 158.00 price level has presented a strong barrier to price movement in the USD/JPY daily market. As a result, the ongoing session has presented a downward retracement via the corresponding price candle. Nevertheless, the pair still trades above all the Moving Average curves on the chart. Also, this major FX pair trades at a considerable distance above the psychological price level of 156.00.
Meanwhile, the Stochastic RSI lines are falling sharply downward towards the oversold region, and this is so despite the minimal price decline in the ongoing session. Therefore, it appears that once the bulls have gathered their strength, we may see this market surge through psychological resistance at the 158.00 price level.
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