The US dollar weakened significantly with the release of key data, leading to substantial profits in some major FX pairs. Let’s delve into the technical analysis of these pairs.
EURUSD: Bullish
As mentioned earlier, the USD’s weakness benefited EURUSD traders, resulting in notable gains. Yesterday’s session witnessed the most significant price movement in months, propelling prices to a two-month high. Today’s session shows potential for further upward momentum, as evident in the green price action at the close of the previous session’s candle.
Additionally, the Moving Average Convergence Divergence (MACD) indicator bars for the current session are taller than the previous one, indicating robust bullish momentum. This suggests the potential for further price increases towards the 1.0950 mark in this FX pair.
GBPUSD: Bullish
Similar to the EURUSD market, the GBPUSD market exhibits prospects for additional upward price movements. Technical indicators align with a positive outlook in this market. The previous session was notably profitable for long traders trading this major FX pair, and the ongoing session remains bullish.
MACD bars are solid green, with the current session’s bars taller than the previous session, indicating increasing bullish momentum. The MACD lines continue their upward trend, and trading activities persist outside the upper limit of the Bollinger Bands. Consequently, price action may approach the 1.2600 mark shortly.
USDCHF: Bearish
Major FX pairs with the US dollar as their base are under bearish pressure, as observed in the USDCHF. The weakening dollar momentum has caused this pair to spiral downward, breaking through the support at 0.8962. Meanwhile, the current session has revealed a bearish intention of falling further downward during today’s trading session.
Additionally, the MACD bars are growing further downward below the equilibrium level of the indicator. Similarly, the MACD lines continue to fall below the equilibrium level. As a result, traders might want to maintain their bearish stance towards the 0.8800 mark, pending any contrary fundamentals.
USDCAD: Bearish
The USDCAD has also experienced its share of bearish pressure. The downward correction began three sessions ago, pushing price action below the middle band of the Bollinger Bands and below the 1.3730 mark. Although the MACD lines are still above the equilibrium level, they are descending towards it.
Additionally, the bars of the MACD indicator are growing taller on the negative axis, indicating that bearish pressure may extend toward the 1.3650 mark.
AUDUSD: Bullish
The AUDUSD pair commenced the week with an upside correction, building on the momentum from the previous week. However, despite the significant profits recorded by this FX pair in the previous session, the ongoing session appears to be encountering some resistance, as evident from the price candle representing the current session.
This resistance seems robust, given the prior failed attempts to breach it. Additionally, the MACD indicator lines have formed a bullish crossover above the equilibrium level, and the bars are growing, indicating an increasing bullish momentum, despite the initial rejection when price action tested the 0.6489 price mark. Nonetheless, there is a likelihood that price activities may still rise beyond the 0.6500 mark to challenge the 0.6600 mark.
EURJPY: Bullish
The EURJPY market is experiencing a notable surge in its upside retracement, marking a breakthrough above the resistance level at 159.00. While previous sessions showcased a significant upward trend, the ongoing session stands out with a more pronounced momentum gain, evident in the size of the current session’s price candle. The Moving Average Convergence Divergence (MACD) indicator lines mirror the daily chart’s price action, reinforcing the overall bullish sentiment.
Additionally, the presence of green bars above the equilibrium level underscores the strength of this bullish trend. Traders can now anticipate further upward corrections, with a potential target reaching at least the 165.50 mark.
USDJPY: Bearish
Similar to other pairs with the US dollar as the base, the USDJPY has undergone a retracement to lower price levels. Price action encountered a strong rejection, causing prices to fall back through the middle limit of the Bollinger Bands indicator. However, there has been moderate resistance to further price declines in the ongoing session.
Consequently, price action has resumed trading above Bollinger’s MA. Interestingly, it is observed that although the MACD had previously initiated a bearish crossover, this trend seems to have been halted following the moderate upside correction witnessed in the ongoing session. Yet, there are still potentially influential fundamentals to come; should they favor the USD, this will further support the pair in attempting the 152.00 mark.
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