The previous week witnessed considerable traction in most major FX pairs. As a result, swing traders benefited more from market movements compared to long-term traders. At this point, the US dollar seems to lack key fundamentals, which isn’t favorable for most FX pairs.
EURUSD: Bearish
EURUSD failed to maintain a position above the 1.0700 price level, consequently slipping below it. Although the ongoing session appears to have slowed down, as indicated by the last price candle on the chart, the major pair still trades above most Guppy Multiple Moving Average (GMMA) indicator lines.
However, the Relative Strength Index (RSI) indicator shows a downward trend following the latest bearish crossover. Presently, it seems the pair may be heading towards the 1.0650 mark.
GBPUSD: Bearish
Following the recent price surge in the GBPUSD market, bears seem to have shown interest in this major FX pair. Price action in this market has consistently retraced its steps toward support at the 1.2259 price level over the past four trading sessions. However, the ongoing session seems to have experienced decreased participation, possibly due to Powell’s expected speech later today.
Nevertheless, price movements in this market are now approaching the 1.2259 price mark and are below three of the five green sets of GMMA lines. The RSI lines are still trending downward, moving toward the 60 mark on the indicator. If the expected Powell’s speech brings favorable fundamentals, price action might rebound toward the 1.2290 mark.
USDCHF: Bullish
The USDCHF pair has been attempting an upside rebound in the past two trading sessions. However, the lack of significant market-moving fundamentals has failed to generate strong convictions in this market. Consequently, it has been challenging for the major FX pair to move upward.
Currently, price action seems stuck among the interwoven GMMA lines, indicating indecision. Additionally, the RSI lines on this chart continue to trend downward, despite the ongoing session’s price candle appearing green. Nonetheless, a price rebound might initiate off the 0.9000 price level towards the 0.9100 mark. On the other hand, if the US dollar weakens after Powell’s speech, support could fail.
USDCAD: Bullish
The USDCAD market has sustained its upside correction from the 1.3690 mark, likely due to the more dovish characteristics of the Canadian dollar. Price action continues to approach the resistance at the 1.3800 mark, but the ongoing session appears to have less momentum based on the size of the representing price candle.
Additionally, the Moving Average Convergence Divergence (MACD) indicator still indicates that downward forces in this market are weakening, as its lines trend sideways and bars grow shorter. Consequently, one can still anticipate the upside correction to extend towards the 1.3850 mark.
AUDUSD: Bullish
Despite the lackluster performance of the USD dollar, the AUDUSD pair has swiftly retraced to lower levels. As the US dollar weakens, this has provided the major FX pair with some breathing space, enabling price action to bounce off support at 0.6422.
The MACD indicator lines remain above the equilibrium level, showing bars with a pale green appearance. The convergence of these lines seems mostly due to the previous downward correction. The pair may still continue the downward correction towards the 0.6400 mark if favorable fundamentals for the US dollar arrive.
EURJPY: Bullish
Examining the EURJPY market, it’s evident that there’s a lack of substantial market engagement, as seen in recent price candles displaying short bodies. The current session implies that emerging fundamentals could be steering most market movements.
The market persists above the GMMA lines with a consistent candle size, reflecting limited interest. Remarkably, the RSI leading line has crossed the 90 mark, while the lagging line lags behind, indicating a volatile market poised for swift movements. Despite these technical indicators, traders might foresee an upward correction towards the 162.00 mark.
USDJPY: Bearish
The USDJPY is maintaining an upside focus towards the 152.00 mark. However, the market currently experiences low volatility, yet it seems that buyers are gaining minimal profits. Price activity had encountered strong resistance when it reached the 152.00 mark about eight sessions ago.
In today’s trading session, the price of this pair has repositioned above the Guppy Multiple Moving Average (GMMA) curves. Additionally, the Moving Average Convergence Divergence (MACD) indicator lines have converged for a bullish crossover above the equilibrium level. Considering all market indications, it could be concluded that this market still exhibits upside potential. Therefore, price activity may attempt to breach the 152.50 mark at this stage.
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