This week seems somewhat intriguing as major FX pairs are being impacted by recent related economic reports. Only a few of these pairs seem to be benefiting currently from the available fundamentals. Nevertheless, let’s examine these markets to see what may become of them soon.
EURUSD: Bullish
The major bias of EURJPY as of the time of writing is bullish. This suggests that buying traders have recorded moderate profits in this market. As can be seen from this price chart, bulls have been recording minimal profits over the past five to two sessions.
However, it could be seen that yesterday’s trading session presented a more significant profit. Nevertheless, today’s trading session is showing that buyers will experience some resistance from sellers. The last price candle here is a red one, and it is appearing above the 9- and 21-day Moving Average (MA) lines.
In addition, the Stochastic Relative Strength Index (RSI) indicator has delivered a crossover in the oversold region. These lines seem sideways at this point, perhaps due to today’s recorded losses. Traders will have to wait on the sidelines to see if the price correction will extend toward the 1.0930 mark to gain better insight into the price direction in this market.
GBPUSD: Bearish
The GBPUSD major bias is bearish, as price action seems to gradually make its way toward support levels. This is happening after price action crossed below the 9-day MA line about six trading sessions ago. In this session, price action seems to be headed towards a recently tested support level at the 1.2726 price mark.
Price action may break down the support at the mentioned price mark this time around. In addition, considering the indications coming from the RSI, we may expect that price activities may break down this support.
The lines of the RSI can be seen plunging deep into the oversold area. As a result, this suggests that buyers may be too weak to resist a downward price retracement. Consequently, this pair may fall to the 1.2650 mark.
USDCHF: Bullish
The USDCHF pair seems to have found a strong support level at the 61.80 Fibonacci Retracement level about ten trading sessions ago. This opinion comes from the fact that price action has stayed above this level in the past ten sessions.
However, it appears that price action is about to take off from this support level. The last price candle here appears just above the support at the 61.80 Fibonacci Retracement level. Meanwhile, the RSI indicator lines have just delivered a bullish crossover.
Although rice action remains below the MA lines, it can be expected that prices may rise toward the 0.8983 mark.
USDCAD: Bearish
The USDCAD pair seems to be the best-performing pair in this week’s major FX pair analysis. This pair has been recording upside profits in the past two trading sessions. Furthermore, in the ongoing session, prices may advance toward a higher price mark.
This is because the last price candle here is a bullish one. Also, with the help of the last price candle, rice action has risen further above the 9-day MA line. In addition, the Stochastic RSI indicator curves are ramping upward toward the overbought region.
Since the majority of indications arising from this market align with the speculation of more price increases, traders can anticipate a retracement of the 1.3223 price mark.
AUDUSD: Bullish
The AUDUSD has been retracing lower support marks since the 15th of this month. This Downward retracement has extended until now. The ongoing session has already advanced the downward retracement significantly, and more downward retracements may occur in this market.
Strengthening this opinion is the fact that price activity is significantly below the crossed MA curves. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator maintains that the downward momentum is strong.
This can be seen as the histogram bars are red and are appearing below the 0.00 level of the indicator. Therefore, traders can brace themselves for a retracement of the 0.6616 price mark.
EURJPY: Bullish
The previously accepted price resistance level was breached by price activity in the EURJPY market. It then exceeded the thresholds of 156.00 and 157.00. However, there was a slight price correction downward when it got closer to the 158.00 price point.
Moving on, it is possible to ignore the observed price adjustment, but the Moving Average Convergence Divergence (MACD) indicator’s signals show that the upward momentum is waning. The bars of this indicator are currently light green despite the fact that the lines are above the equilibrium level of 0.00.
This implies that the bulls are losing steam, the bears may get more self-assured, and the correction turns into a retracement.
USDJPY: Bullish
The USDJPY pair broke the upside price channel six trading sessions ago. Price action has remained outside this channel since then. Price action can also be seen above the 9- and 22-day MAs. However, in the current trading session, price action is showing that it may retract into the narrow upside-sloping price channel on this chart.
This inference is drawn from the fact that the last MACD bar is now pale green, which suggests a downward price correction in this session. Even the lasting price candlestick can be seen appearing red. The lines of the MACD can still be seen as having an upward bearing.
Therefore, traders will have to wait for price action to test the ceiling of the price channel before anticipating a downward retracement towards the 142.00 price mark.
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