This week’s major FX pairs analysis shows that some of these pairs are still holding on to the last momentum gain in the USD. Meanwhile, some are already losing out due to this as a result of new economic events in various other regions of the world.
EURUSD: Bearish
The trend around the EURUSD has changed significantly since the start of this week’s trading activities. After the price action of this FX pair tried to remain on an upside path, the previous trading session seems to have offered a considerable bearish tone to it. The price candle that represents this session was a bearish one and seems to have caused traders to bleed out most of the recent gains in this market. However, the ongoing session has only managed to bring about a very minor upside correction of the draw trendline on the chart, and we can still see that the major bias here is still bearish. This is because trading activities are still occurring below the two sets of the Guppy Multiple Moving Average (GMMA) curves on this market. Additionally, a crossover that signals a downward crossover has just occurred on the Stochastic Relative Strength Index (RSI) indicator. Therefore, traders will have to wait a bit on the sidelines before placing trades here.
GBPUSD: Bullish
The Upside momentum in the GBPUSD has also slowed, but it still seems a bit optimistic. Earlier this week, this FX pair continued with its upside path following a rebound near the 1.2702 mark. Nevertheless, the just concluded session has brought a significant setback to the earlier price move. But at this point, it appears that buyers are re-entering, causing price action to regain its upside trajectory. Although the gains here are still young, indications coming from the RSI seem to strengthen bullish hopes. Here, it could be seen that the lines of this indicator continue to rise upwards after a minor correction. Meanwhile, the last green price candle here is now testing the first green line of the GMMA indicator. Consequently, this suggests that we may witness some more price increases in the ongoing session, which may continue toward the 1.2820 price mark.
USDCHF: Bearish
Price action in the USDCHF market has generally on the upside since the recent USD rally. But even since rice action popped through the Fibonacci Retracement level of 78.60, it appears that the pair lost momentum and has been consolidating ever since. This consolidation move has extended till now and has placed price action between the two sets of the GMMA indicator curves. However, the Stochastic RSI indicator seems to be indicating that a headwind is developing in this market, which may plunge the price below the aforementioned Fibonacci Retracement level. Nevertheless, the last price candle here remains above that retracement level. Unless a piece of impactful news emerges from the United States soon, price action may fall to the 0.8730 mark.
USDCAD: Bullish
The USDCAD pairs stay strongly bullish, not minding the dying momentum in the USD. The contributing factor to this seems to be the weaker momentum surrounding the Canadian dollar as opposed to the US dollar. Here we can see that price action keeps ramping upwards even after breaking through the 1.3300 resistance level. Considering the size of the last price candlestick on this chart, one could say that the upside move isn’t over yet. The current price level remains above the two sets of GMMA lines following a crossover between them. By implication, this suggests that the market is bullish and prices may proceed on an upward path. Also, the RSI lines still maintain an upside bias even as they seem to be coming together for a bearish crossover. At this point, we may witness another upside correction towards the 1.3500 mark.
AUDUSD: Bearish
The AUDUSD pair stays mostly bearish even after the appearance of a green price candle, which signifies an upside correction in price movements. This is because trading activities in the market of this FX pair continue to occur below the GMMA lines. Consequently, it appears that Tailwind will have to deploy more ferocity to at least give a sustainable upside indication. However, the RSI indicator curves seem to be indicative of the fact that this may be the initial stage of an upside correction. This is drawn from the upside crossover that could be perceived on this indicator. Also, the lines seem to have a slight upward bearing after a crossover. If upside momentum in the market stays steady, prices may increase toward the 0.6580 mark.
EURJPY: Bullish
The EURJPY pair recovered to trade above the Bollinger Bands indicator’s middle limit during the previous trading session. Price activity spontaneously broke past the resistance provided by the upward-sloping trendline on this chart before this occurred. Additionally, the Stochastic Relative Strength Index (RSI) indicator lines, which recently delivered an upside crossover above the indicator’s 70 levels, are still pointing in the direction of the overbought zone. This effectively conveys that bulls are resilient in the face of challenges and may continue driving prices upward toward the 157.00 mark.
USDJPY: Bullish
Ever since the beginning of this week’s trading, the USDJPY pair has continued to rise toward higher price levels. And even at this point, when a red price candle has appeared on this chart, we can still see that the upside path is maintained nonetheless. However, it can only be concluded that price action may have set a new upside course, as can be seen through the first trendline coming from below. In addition, the RSI lines keep rising into the overbought region. The observed display in the RSI suggests that upside momentum will keep mounting for this FX pair, causing further price increases. Another thing strengthening bullish hopes is the fact that trading activities are occurring above the two sets of the GMMA curves even after the appearance of the last red price candlestick. Therefore, traders can maintain the bullish hope that price action may extend its retracement towards the 144 mark.
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