In recent weeks, the US dollar has been impressive in its performance. However, as the week’s trading draws to a close, the momentum in the USD seems to be slowing down. Consequently, this seems to be offering some relief to some of the major FX pairs that have been under bullish pressure.
EURUSD: Bearish
Looking at the EURUSD market from a broader range of perspectives, it could be assumed that the market is still on an overall downward trend that started months ago. However, as earlier mentioned, the recent slowing in the US dollar has allowed traders here to pick up some short-term gains as the price action is now at the ceiling of the downward-sloping price channel.
Nevertheless, in a short time frame, price action in this market stands a chance of extending its upside correction. Backing this opinion is the appearance of a small-bodied red candle, which still appears very much overwhelmed by previous profits in this market. Also, the applied Moving Average Convergence Divergence MACD indicator lines have just delivered a bullish crossover, while green bars seem to have started appearing above the equilibrium level. Therefore, with the arrival of favorable fundamentals, the FX pair may extend an upside correction towards the 1.0600 mark.
GBPUSD: Bearish
The GBPUSD pair only tested the anticipated price region at the 1.2100 and 1.1819 marks when the pair gained some upside traction, which saw the pair bounce upwards off near the 1.2050 price level.
Nevertheless, this pair can be regarded as still being on a downward trend since trading activities still remain below the 50-day MA line. However, as the MACD indicator has started indicating a gain in upside momentum, traders can at least anticipate that the upside correction may rise past the 1.2200 mark. This inference is drawn from the MACD as its lines steadily rise upwards, as well as the appearance of green bars above the equilibrium level of the indicator.
USDCHF: Bullish
The USDCHF pair has been heading south since about two trading sessions ago. As a result, the losses incurred about two sessions ago still appear overwhelming compared to the gains of the ongoing session. With price action now above the 50-day MA lines, Fibonacci Retracement Level 50, and the 0.9120 mark, the MACD indicator is indicating that this market may be gathering bearish momentum.
This is because the MACD lines have just delivered a bearish crossover while at a significant level above the equilibrium level. Also, the appearance of red bars below the equilibrium level of the MACD since the past session signals that price activities in this market may still descend toward the 0.9102 mark.
USDCAD: Bullish
The USDCAD pair has also felt the effect of the slowing momentum in the US dollar. This major FX pair has witnessed a significant price increase all the way from 1.3148 through the 1.3700 price level. But as soon as price action crossed the 1.3700 threshold, the bullishness of the US dollar started slowing, thereby introducing some resistance to further price increases in this market.
Although the ongoing session still portrays that bulls are somewhat in control, price action can be seen making a smooth curve off the price mark at the 1.3730 mark. Trading activities in this market stay at a significant distance above the 50-day MA curve, while MACD curves are still above the equilibrium level. But on the contrary, the last bar of this indicator is now pale green, indicating slowing upside momentum. Nevertheless, price action may still continue towards the 1.3750 mark.
AUDUSD: Bearish
The AUDUSD remains mostly bearish despite the relief offered, as bulls in the USD market take their foot off the gas pedal. In the past two sessions on the daily market, price action bounced off the last line of defense at the 0.6300 mark. However, the ongoing session is showing that the upside correction is now facing rejection near the resistance price mark at the 0.6370 price level.
Additionally, price action remains below the 50 MA line. But despite this, the MACD is revealing that the upside correction may continue as the line of the indicator can be seen approaching a bullish crossover below the 0.00 level. Also, the bars of this indicator can be seen appearing pale red and growing shorter, indicating that downward forces are declining. Therefore, traders can anticipate that price action may cross the 0.6380 resistance at least.
EURJPY: Bearish
EURJPY seems to remain under the influence of bullish pressure. This major FX pair has earlier challenged the support at the 150.00 mark. However, subsequent sessions have shown that some fundamentals have favored the pair, assisting it to at least sustain above the 150.00 threshold. Nevertheless, even the ongoing session has fallen closer to the 150.00 support.
Even the MACD keeps showing that downward momentum may be strengthening, and it is as if buyers are losing traction as the two sessions won by the bulls keep falling toward support levels. The lines of the MACD keep falling below the equilibrium level. The last bar of this indicator can be seen appearing solid red below the equilibrium level. Consequently, all these indications here show that bears are still eyeing the lower supports below the 150.00 mark.
USDJPY: Bearish
USDJPY price action has raced quickly towards lower support levels. It appears as if the Japanese yen has suddenly strengthened against the dollar over the past three trading sessions. However, buyers seem to have spontaneously regained control as dash price candles appear in this FX pair’s daily chart.
Although the trading activities for this pair continue to occur above the 50-day MA line, the lines of the MACD line continue to fall downwards and towards the equilibrium level from above it. Also, the bar now appears solid red below the equilibrium level of the MACD indicator. This shows that the market may still approach the 147.00 price mark.
Leave a Reply