The Dollar side of the market seems a bit quiet about market-influencing fundamentals lately. This has sent most of the major forex pairs into a downward spiral. Let’s see what can be expected from this week’s major pairs.
EURUSD: Bullish
The EURUSD has continued to capitalize on the weaknesses in the USD side of the market. This major pair has continued to retrace higher into the Bear Zone of the Fibonacci Retracement level since bears appear to be on vacation.
Another trading session has started, with buyers recording more and more gains. Even technical indicators are showing that prices are more likely to continue on their upside path. The 9- and 21-day Moving Average MA lines have delivered a bullish crossover below the price action. Also, the Stochastic Relative Strength Index (RSI) curves are still rising upward into the overbought zone of the indicator. Consequently, bullish momentum seems strong enough to propel prices toward the 1.1100 mark.
GBPUSD: Bullish
The GBPUSD pair is also capitalizing on the favorable weakness of the USD. Even after price action broke through the resistance at 1.2700, this major pair has been performing quite well. However, the lackluster performance of the Dollar is seen to have supplied more juice to price movements in this market when the upside momentum appears to be weakening.
The ongoing session has commenced with price action in this market extending a retracement toward a higher resistance level. This can be seen as the MA lines remain under price action following a crossover.
Also, the RSI indicator lines seem to have reached the peak level of the indicator, but the lack of headwind keeps these lines dragging there. Consequently, traders can anticipate that price action may extend a retracement towards the 1.3150 mark.
USDCHF: Bearish
The quietness of the dollar has sent the USDCHF pair into a downtrend because it has given the Swiss the chance to strengthen against it. This major pair exited its consolidation move during last week’s trading to enter a downtrend.
At this point, price action continues to trend lower. Since three trading sessions ago, price candles have been appearing below the MA lines. Additionally, the RSI lines are now flat out in the oversold region of the indicator, with their lines now dragging sideways.
This is because bulls are helpless against the headwinds created in this market. At this point, the pairs are now eying the 0.8744 price level as the next possible support.
USDCAD: Bearish
Earlier on, it appeared that the USDCAD pair was about to leap off an important support at the 9-day MA curve. Nevertheless, the lack of fundamentals in the USD seems to create a headwind for this market.
Subsequently, this caused prices to spiral downward through the support at the 9-day MA line. Furthermore, the RSI indicator lines keep falling toward the oversold region but are still around the 50 mark of the indicator.
At this point, price action in this market is still above the 21-day MA line, but unless a favorable fundamental comes out of the Dollar side, price action may also tear through the 21-day MA lines. In the meantime, traders may eye the 1.3200 price mark for support.
AUDUSD: Bullish
The AUDUSD pair has also capitalized on the current state of the USD to punch through the 0.6700 resistance in the ongoing session. Recently, price action for this major pair has been lurking around the 9-day MA curve.
However, Things changed since the previous trading session, when the tailwind pushed the price above the 21-day MA line. Currently, the 9- and 21-day MA lines have converged below the last price candle on this chart for a bullish crossover. As a result, this move may further propel prices toward higher marks.
Additionally, although the RSI indicator lines are now closer to each other than before, one can see that the lines of this indicator still have an upside bearing. Therefore, traders can still anticipate a retracement toward the 0.6800 price level.
EURJPY: Bearish
The price movement of the EURJPY pair appears to indicate that bulls may merely be giving a dying horse its final kicks. This may be seen because the tiny dash-shaped price candle has only just begun to form throughout the current session. This has only slightly increased prices while keeping trading below the MA levels.
This implies that sellers will continue to be in charge of price changes. The leading RSI line is slightly bent sideways due to the presence of the two-dash price candles on this chart, and both lines are still in the oversold region. At this moment, traders can still anticipate a bearish correction toward the 152.00 price level.
USDJPY: Bearish
The USDJPY market has retreated from its upside track after nearly clinching the 145.00 price mark. This occurrence can also be attributed to the USD phenomenon.
Of all the major pairs this week. The USD/JPY pair seems to be the one that has fallen most sharply. The pair now stands at the 140.00 threshold, with a higher possibility of further downward retracement before any favorable fundamentals roll out.
Bolstering this opinion is the fact that the RSI lines are still depressed in the oversold region, around the 0.00 mark of the indicator. Consequently, traders can anticipate that this retracement will extend toward the 138.00 mark.
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