This week’s major FX pairs appear mixed, as the U.S. president’s trade tariff message creates anxiety in the market. This has notably influenced some of the major FX pairs. Without further ado, let’s examine each of these markets below.
EUR/USD: Bearish
While the USD has drawn most of the market’s attention, the Euro seems relatively tranquil. This has caused EUR/USD to continue its downward retracement for the second consecutive session. The 100-day Moving Average (MA) line has acted as a strong resistance to price action.
As a result, price action in the EUR/USD market remains just above the 20-day and 50-day MA lines. Additionally, the Stochastic Relative Strength Index (RSI) lines are merging and now moving sideways at the 80 mark of the indicator. This suggests that upside momentum is weak, while downward forces are likely to persist, driving the market closer to the 1.0400 threshold.
GBP/USD: Bullish
The GBP/USD market has seen a considerable level of upside recovery over recent trading sessions. However, this major FX pair indicated a trend reversal in the previous session, as the corresponding price candle appeared inverted. The last price candle on this chart has continued to align with the movement of the previous session.
The ongoing session has formed a red-price candle. Nevertheless, price activity remains above most of the MA lines on the chart. The Stochastic RSI lines remain in the oversold region, displaying a slight upward trajectory. While this may suggest that the uptrend is still intact toward the 1.2700 mark, traders should seek further momentum from UK-based fundamental data.
USD/CHF: Bullish
The USD/CHF market has been gaining, largely due to widespread speculation surrounding the U.S. dollar. As a result, price action has continued its upward trajectory, with what appears to be growing bullish momentum, considering the size of the price candle at the time of writing. Likewise, the Stochastic RSI lines have begun rising out of the oversold region, aligning with the current price movement. This suggests that price action is progressing and may soon breach the 0.9000 resistance level.
USD/CAD: Bullish
The USD/CAD market has continued its upward movement ever since this major FX pair resurfaced above the 1.4200 threshold in the past four sessions. The last price candle on this chart has just breached the resistance formed by the 50-day MA line.
The upside correction appears formidable, as price action rises past the MA lines just after the indicator line crosses above price action. Consequently, the Stochastic RSI lines continue moving sideways at the 100 mark. This suggests that the market may soon breach the 1.4400 price level. However, this could be influenced by prevailing economic news from the U.S.
AUD/USD: Bearish
The AUD/USD market remains under bearish pressure, attributed to the strengthening U.S. dollar, which has created strong headwinds. Consequently, price action continues retracing to lower levels, following last Friday’s rejection at the $0.6400 resistance level.
This bearish momentum has persisted. In the ongoing session, price action has fallen below the 20-day MA line. Additionally, the Stochastic RSI lines are steadily declining further into the oversold region, indicating sustained downward pressure. Therefore, traders should prepare for price action potentially reaching the 0.6200 level.
EUR/JPY: Bearish
The EUR/JPY market has remained bearish since the previous week. However, this FX pair has been relatively unstable. As seen on the chart, the market has been making lower lows and appears to be heading for another one this week.
The last price candle on this chart is red, albeit with a smaller body than the previous session. Price action is currently below all the MA lines on the chart, signaling a clear downtrend. The Stochastic RSI lines are also moving downward after crossing below the 40 mark, suggesting that the market may soon drop below the 155.00 price level.
USD/JPY: Bearish
Since the start of the week, the USD/JPY market has lacked significant price movement. As a result, price action has been consolidating sideways below all the MA lines. That said, price candles have been appearing green since the previous session, though all price movements seem vulnerable.
Meanwhile, the Stochastic RSI lines are also moving sideways and flat. This suggests that the upside retracement is struggling to gain momentum. However, traders should monitor fundamental developments that may support an upside move toward the 152.00 price level.
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