The US dollar mood seems to have improved considerably. As a result, this has brought about some nice performances in the major pairs that have them as the base pairs. Let’s have a closer look at price movements in these markets today.
EURUSD: Bearish
Price action in the EURUSD market hasn’t been able to break the price resistance level at 1.1000 in recent times. And the improving mood of the USD seems to be acting as a major pullback since there are no counterbalancing fundamentals on the euro side.
At this point, price action has fallen below the 9- and 21-day Moving Average (MA) curves. This shows that price action may fall to lower support. However, considering the Relative Strength Index (RSI) indicator, one may want to assume that price action may not fall very far from here.
This is because the RSI hadn’t risen very far out of the oversold region before bears took control of the market. Meanwhile, the lines of this indicator have been trending downwards and are now close to the terminal level of oversold. Therefore, traders only expect a further correction towards the 1.0800 mark.
GBPUSD: Bullish
Price action in the GBPUSD market maintains a fair performance even in the face of a better mood surrounding the US dollar. In recent times, this major pair has failed to break the resistance at the 1.2702 price level.
As a result, there was a correction to this mark. Nevertheless, in more recent trading sessions, price action found support just on top of the 9-day MA line. It appears that upside forces have continued to prevail as a green price candlestick has appeared for the new trading session. Consequently, price action appears to have broken the resistance at the 1.2702 mark.
In addition, the RSI lines are now rising and diverging from each other. This seems to show that the upside may be significantly strong enough to convincingly break the 1.2702 resistance. Therefore, traders can anticipate a retracement of the 1.2800 mark.
USDCHF: Bullish
There is low volatility in the USDCHF market. And this seems to have been around since June 16th. Nevertheless, trading activities continue to occur above 0.8950.
More interestingly, the last dashed-shaped price candle for the ongoing session has increased the possibility of upside advancements in this market. This price candlestick sits just above the 9-day MA curve and farther above the 22-day MA curve. However, the RSI indicator seems to be predicting a better outlook for this market. Here, the lines of this indicator are now rising further upward into the overbought region.
Additionally, the better mood surrounding the US dollar may also act as a tailwind for this pair. Consequently, market participants may anticipate a retracement of the 0.9050 mark.
USDCAD: Bearish
The upside recovery in the USD has significantly impacted the USDCAD pair. In the past two trading sessions, the price action of this major pair has significantly corrected in the upside direction.
However, in subsequent sessions, the Sharp price move has cooled. Nevertheless, trading indicators are indicating that bulls may still have some fight left in them. The last green price candle on this chart appears above the MA curves.
Also, the RSI curves are rising upward into the overbought region in a steeper manner, which suggests that upside momentum may be growing even stronger. Consequently, this increases the chances of prices hitting the 1.3300 mark.
AUDUSD: Bullish
The AUDUSD major pair is showing indications that price action is likely to extend the upside retracement towards higher levels. In the previous trading session, a green price candlestick appeared just above the 9-day MA line.
However, a dashed-shaped price candle has appeared for the ongoing session. The very short body of this price candle suggests that downward forces are weak. Also, it is more likely that the bettering mood of the US dollar may still overpower the bears, and the retracement will continue.
Furthermore, the Stochastic RSI lines are rising into the overbought region. Therefore, it could be assumed that upside momentum is still up, which may cause price action to rise towards the 0.67150 mark.
EURJPY: Bullish
The EURJPY market’s price action continues to exhibit strong rising momentum. Price action appears to be stalled below this level due to the apparent strength of the resistance price mark at the 158.00 level. Price movement appears to have bounced back off the indicated support during the current trading session.
The arrival of the most recent price candle on this chart, however, implies that bulls are tenacious because it raises the pair’s price above the 9-day Moving Average (MA) line. The Relative Strength Index (RSI) indicator’s lines are also shown to be convergent toward a bullish crossover.
This suggests that buyers are planning to soon retest the 158.00 resistance price level.
USDJPY: Bullish
The USDJPY pair seems to have increased its upside momentum in recent times. This major pair broke through the upside-sloping price channel on June 21, and it has kept trading outside this channel since then.
Yet, it appears that bulls are ready to keep rising further upward. Although there are indications that suggest that bulls may be running out of strength, a green price candle has just appeared above the two MA lines. This suggests that prices may continue to go higher.
Meanwhile, the MACD lines appear to be converging to indicate a trend reversal above the equilibrium level. Even a red bar has appeared below the equilibrium level.
This suggests that a headwind may push price action back into the price channel. At this point, traders will have to either hope that the price will continue towards the 146.00 mark or correct downwards to the 144.00 mark.
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