The US dollar seems to be in a state of stasis in the meantime. This has offered some upside fighting chances for some of the major FX pairs, while for others it has served as a drawback for upside ambition. Let’s further examine this market for some more insights on where price action may head next.
EURUSD: Bearish
Since about four trading sessions ago, the EURUSD market seems to have become quieter as volatility has reduced. Nevertheless, price action has retraced below the 38.20 Fibonacci Retracement level. Other indications from technical indicators suggest that prices may proceed to lower support even with the perceived low volatility. The lines of the Relative Strength Index (RSI) indicator seem a bit mangled near the 60 levels of the indicator. At the same time, the Moving Average Convergence Divergence (MACD) indicator has started showing that bullish momentum is on the decline. This agrees with the display on the RSI to suggest that prices may decline toward the 1.06500 mark.
GBPUSD: Bullish
On the GBPUSD market, price action also appears quieter after poking through the 23.60 Fibonacci Retracement Level as resistance. Subsequently, after that, volatility reduced significantly as price action continued to trickle towards the middle limit of the applied Bollinger Bands indicator in this market. However, the current trading session has shown that price action is trying to rebound off the middle limit of the Bollinger Band indicator on this price chart. Simultaneously, the RSI indicator curve seems to be approaching a bullish crossover as they move closer to each other above the 50 mark of the indicator. Also, the histogram bars of the MCAD indicator are still pale green. This suggests that upside forces are still hanging around, and a retracement toward 1.2497 may occur.
USDCHF: Bearish
In previous trading sessions, price activity in the USDCHF market had broken through the Fibonacci Retracement level 50 at 0.9087. However, it quickly met headwinds, perhaps due to the changing mood of the US dollar, which resulted in a much quicker downward retracement below the recently broken resistance. At this point, a very small hope of an upside rebound has appeared off the middle limit of the Bollinger Band indicator. Nevertheless, trading indicators are maintaining a bearish mood. The RSI lines are trending fast toward the oversold region. At the same time, the lines of the MACD have just performed a bearish crossover, and this seems to dampen the hope of a price rebound. Consequently, price action seems to be heading toward the 0.8950 mark.
USDCAD: Bearish
USDCAD’s price action turned bearish on the 31st of May when it tested the resistance price mark at 1.3600. Subsequently, it appears that fundamentals and exiting traders combined forces, and this caused a rapid downward retracement of multiple support levels at the 1.3520 and 1.3407 price marks. Even the ongoing session remains bearish, and price activities seem set for more downside retracement based on signs from trading indicators. On this market chart, the lines of the RSI indicator have converted and seem to be at the initial stage of a crossover. Concurrently, it appears that bearish momentum is getting stronger, going by the MACD, as its bars below the equilibrium level have regained a solid red appearance. Consequently, price action here may retrace the 1.3300 price mark.
AUDUSD: Bullish
The AUDUSD price action has started an upside recovery since the 1st of June. A larger part of this upside retracement seems to be due to favorable fundamentals coming from the Aussie front and a calmer US dollar. In the ongoing session, according to this chart, price action is already flirting with the 0.6700 price mark. Meanwhile, the lines of the RSI indicator have crossed each other in the overbought region but seem unwilling to trend downward. Meanwhile, the MACD indicator lines are now trending upward, while the bars of this indicator are getting taller as trading activities continue. Consequently, the signs coming from technical indicators suggest that price activity is more likely to retrace the 0.6750 mark.
EURJPY: Bearish
The EURJPY price action has been fluctuating within the price range of 151.31 and 148.02. However, in the previous trading session, price action went more bearish as it retraced below the middle limit of the Bollinger Bands, bringing prices closer to the 148.40 price mark. Nevertheless, the ongoing session seems to suggest that bulls resist headwinds. Yet the staged resistance seems weak, going by the size of the price candle and indications arising from technical indicators. The lines of the RSI keep diving deep into the oversold region. The bars on the MACD have also maintained their solid red color. Combining the signs on the two mentioned indicators suggests that the offered resistance may not hold, as prices may retrace the 148.02 price mark.
USDJPY: Bearish
The USDJPY market seems ready to offer bear traders some profits. This is happening after price activities in this market recently ramped through multiple price levels, beginning from the 5th until the 285th of May. However, during more recent trading sessions, price action has taken a bearish tone, and in the ongoing session, it seems to have picked a clear bearish path. This can be seen as the last price candlestick has pushed the pair’s price below the middle band of the Bollinger Bands indicator. In addition, the Relative Strength Index indicator lines are still trending in the direction of the oversold zone. Likewise, the MACD curves are also running slightly downward and toward the equilibrium level. All these signs combined suggest a bearish path for price action, and prices may fall to the 137.00 mark.
Get free access to our lifetime VIP membership. Join us here.
Leave a Reply