The major driving force of the Forex market as of the time of writing seems to be the US dollar. Consequently, it has created a headwind in some major currency pairs and a tailwind in others. Let’s further examine these markets.
EURUSD: Bearish
The EURUSD pair has in recent times maintained an upside path for roughly a month. However, buyers started losing momentum about eight trading sessions ago. Although with less vigor, price action has fallen below the middle limit of the Bollinger Bands. Likewise, the Relative Strength Index (RSI) indicator, had earlier aborted an upside retracement to extend the downward retracement. Nevertheless, the Average True Range Indicator seems less bearish. Therefore, traders can anticipate a retracement towards the 1.0800 mark.
GBPUSD: Bullish
GBPUSD Stays outside the broken price channel at 1.2541 but hasn’t gone too far upwards due to headwinds. However, price action in this market remains bullishly biased. After price action broke the long-term resistance at the 1.2541 price mark, it has remained above the middle band of the Bollinger Bands. Also, the Stochastic Relative Strength Index (RSI) curves remain tangled in the overbought region. Additionally, the terminal of these curves seems to be moving apart in what seems like a crossover. Consequently, it appears that price action may still be heading upward.
USDCHF: Bearish
In general, price activity in the USDCHF market has remained bearish after it broke down the support at the 0.9080 price mark. Also, after the price action slide below the 0.9030 mark, it has been ranging between the 0.9030 and 0.8860 marks. Currently, price action has started retracing upwards, though still below the middle limit of the Bollinger Bands. Furthermore, an upside crossover seems to have appeared on the RSI indicator. Therefore, it shows that price action now has the chance of breaking the 0.8929 price mark to retrace the 0.9000 mark.
USDCAD: Bullish
USDCAD rebounded off the lower limit of the Bollinger Bands about five sessions ago. Prior to this, there was a steep downward retracement, which changed the market trend from a bullish to a bearish one. However, price action has started a new upside path, or a retracement at the very least.
Traders should note that price activity still remains very much in the bear’s court, so some caution should be exercised concerning upside gains. Buyers need to put in more work to change the market trend. Consequently, traders can anticipate a retracement of the 1.3400 price mark.
AUDUSD: Bullish
Price action in the AUDUSD market has recorded moderate gains after it crossed above the middle band of the Bollinger Bands indicator. However, the pair is facing rejection near the 0.6780 price mark. The last price candle in this market reveals that some short traders have been placed and have caused some setbacks to upside price movement in this market. In addition, the Moving Average Convergence Divergence indicator bar is now pale green, and this shows that price action is facing downward forces. Nevertheless, going by the general trend, traders can still anticipate a retracement of the 0.6797 mark with a stop at 0.6730.
EURJPY: Bearish
The EURUSD pair keeps losing traction as prices fall further below the 148.61 mark. Price action fell below 148.61 in the past three trading sessions. Nevertheless, a dash price candle has just appeared on the daily chart. The appearance of the price candle appears more like an attempt to abate the bear’s activity. However, this attempt may be too weak, as indicated by technical indicators. Price action has crossed below the moving average in the Bollinger Bands for a downtrend. At the same time, the MACD shows that bears seem to be getting stronger, as their bars are red and getting longer. Traders can anticipate a retracement of the 146.24 mark.
USDJPY: Bearish
Price action in the USDJPY market has stayed around the middle limit of the Bollinger Bands for about five sessions. At this point, USDJPY bears spontaneously tore through the support at the 135.10 price mark. This has subsequently pushed the pair’s price to 134.37. In addition, the MACD indicator can be seen indicating an increasing bearish tone in this market through its bars. At this stage, the market has a more bearish tone. Therefore, USDJPY may be heading toward the 134.00 price mark in a short while.
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