Most major FX pairs are continuing on their previously chosen paths. However, some of them are experiencing reduced momentum as the price action slows down. Let’s delve deeper into each to understand what can be expected.
EURUSD: Bullish
The EURUSD has performed impressively recently, reaching an eight-month high. However, its price movements seem influenced by the holiday period, as the price action has slowed down, as evident in the corresponding price candle.
EURUSD currently trades at the 1.1037 price level, standing above the 21-day Moving Average curve, suggesting potential upside momentum. Despite the stagnant price, the MACD curve still shows an upside bias. Traders may target the 1.1100 threshold level.
GBPUSD: Bearish
The GBPUSD, another major FX pair, appears constrained by the yuletide season. Its price action has ranged between the 21-day MA line and the 1.2749 mark. While the previous session attempted to extend through the 1.2749 resistance level, the ongoing session has taken a different path.
A small red price candle on the daily chart, coupled with indications from the MACD indicator, suggests a potential stronger downward correction. The indicator’s bar below the equilibrium level and mangled lines lacking a clear direction indicate bearish momentum, possibly testing the 1.2660 price level as support.
USDCHF: Bearish
USDCHF has been bearish since peaking at the 0.9200 price level. Price action has retraced lower with moderate volatility until the previous session. However, the ongoing session has been flat but still shows a mood for further downward corrections.
Despite declining momentum, the MACD indicator lines maintain a downward trend. With price action below the 21-day Moving Average line, it can be assumed that this market still follows a bearish path. Therefore, traders can aim for the 0.8500 mark.
USDCAD: Bearish
The USDCAD pair continues its downward correction after failing to find support above the 1.3600 price mark. A downward retracement followed, tearing down support at the 1.3510 and 1.3302 price levels. This major FX pair indicates weakness in the US dollar against the Canadian dollar.
Despite minimal gains in the ongoing session, technical indicators suggest prices may progress lower. The indicator lines plunge more steeply towards lower levels, and the solid red bars below the equilibrium level are increasing in length towards the negative axis. Consequently, this hints that prices may fall towards the 1.3148 level.
AUDUSD: Bullish
The AUDUSD continues on its bullish path, which began around September 27. Price action has predominantly stayed above the 21-day MA line. Despite signs of declining upside momentum, this major FX pair consistently trades above the 0.6800 threshold, maintaining a significant distance from the MA curve.
The upward trend in RSI indicator lines, following a recent crossover, suggests gradual momentum for the US dollar. The chances of further upside correction are higher than a trend reversal based on technical indicators. Traders may target the 0.6900 price mark.
EURJPY: Bullish
The EURJPY market displays erratic behavior, particularly during holiday periods. Despite this, there’s been a notable rebound in price action. The ongoing session, with limited participation, is evident in the dash-like appearance of the corresponding price candle. Nevertheless, this candle hovers not far below the 21-day Moving Average (MA) line.
Simultaneously, the Moving Average Convergence Divergence (MACD) indicator suggests potential market momentum, with its lines converging toward the equilibrium level. The most recent MACD bar has transitioned into a solid green, indicating the possibility of further upward movement. This implies a potential opportunity for increased upward momentum, potentially propelling prices toward the 158.00 level.
USDJPY: Bearish
USDJPY has deviated from its upside course since its price action tested the price resistance level at the 152.00 mark. Price volatility has significantly reduced, settling around the 142.00 price level over the past three sessions. The ongoing session has yielded only minor profits off the 142.00 price mark.
Although price activity remains below the 21-day MA line, it can be observed that the Stochastic RSI lines have converged for a bullish crossover. The convergence occurred above the 70 mark of the indicator. Therefore, this suggests that the observed profits may develop towards the 143.00 mark shortly.
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