Monetary policies in some major economies, as they concern the major FX pairs, have been somewhat cool. This has had a limiting effect on price movements in most of these pairs as some struggle to recover from previous losses. Let’s examine each of these markets for more insights.
EURUSD: Bullish
Price action in the EURUSD market earlier failed to extend its minimal upward correction through the crossed lines of the Guppy Multiple Moving Average (GMMA) curves. As a result, a downward correction occurred, bringing the market to test the support at 1.0818. However, today’s session has begun on a different note, with a minimal upside correction bringing the pair to 1.0854.
Nevertheless, trading activity of this major FX pair still looks bearish from a technical indicator point of view, remaining below the GMMA lines and the Moving Average Convergence Divergence (MACD) indicator lines having a downward bearing. Therefore, traders should have lower expectations for a continued price increase towards the 1.0900 mark in this market, considering economic developments in corresponding regions.
GBPUSD: Bearish
The GBPUSD market continues to move sideways below the 1.2749 resistance. This major FX pair seems to have lost direction since the resulting rebound off the support formed by the last line of the GMMA indicator lines terminated. The ongoing session maintains bearish characteristics, placing the market below the green GMMA line. The session has appeared as a dash-shaped price candle.
The MACD lines are now trending sideways, just above the equilibrium level. With trading activities now below the green GMMA, the pair faces more resistance in its upward track, potentially contributing to bearish pressure and pushing the pair toward the support at the 1.2600 mark.
USDCHF: Bearish
The sentiment surrounding the US dollar is limiting the overall upside retracement off the support at the 0.8385 mark in the USDCHF market. The crossover between the GMMA lines has failed to offer significant upside traction for price movement in this market. Price action failed to extend the retracement through the 0.8751 mark, hugging the last green GMMA lines on this chart.
Nevertheless, the MACD curves are still above the equilibrium level, with a fair upward bearing. However, it should be noticed that the bars of this indicator are now pale green, signaling insufficient bullish momentum in the market. Traders can anticipate prices trickling towards the 0.8751 mark in the meantime.
USDCAD: Bullish
Price action in the USDCAD market seems to be consolidating within a narrow range formed by the resistance at the 1.3510 and the 1.3453 marks. The resistance at the 1.3510 mark is strong.
Since price action in this market hasn’t fallen below most of the GMMA lines in the ongoing session, traders may still be hopeful of a potential breakout of the resistance. The last price candle has advanced prices through some of the green GMMA lines, despite thinning activity in the market. The MACD indicator lines have turned sideways with respect to the prevalent trend in the market, suggesting there isn’t enough upside push. Traders can consider the 1.3500 price mark in the meantime.
AUDUSD: Bearish
Recent price action in the AUDUSD market has been consolidating below the 0.6600 resistance for about six sessions. Today’s session hasn’t brought hope of changing this narrative, as a bearish price candle keeps this major FX pair below the GMMA line at the 0.6552 mark.
Meanwhile, the MACD bars are below the equilibrium level, and the technical indicators used here aren’t offering much hope for an impending upside correction. The bars of the MACD indicator are growing shorter below the equilibrium level, pointing to momentum building up silently. Traders can anticipate a downward correction towards the 0.6500 mark.
EURJPY: Bullish
In the EURJPY daily market, recent price trends show a decline below significant technical and market reference points. After a substantial downward correction in the previous session, the ongoing trading session continues to witness further decreases in prices. The latest price candle on the chart has pushed values beneath two of the green GMMA lines, signaling the onset of a decisive downward correction.
While the MACD lines remain above the equilibrium level, the leading line has initiated a downward correction. Additionally, the indicator bars above the equilibrium level have turned pale green, indicating an increase in downward pressure. This strengthens the bearish outlook, suggesting a potentially intensified downward correction towards the support level at the 161.00 mark.
USDJPY: Bullish
Price action in the USDJPY market has punched its way through the 148.00 resistance level. The pair now trades above that mark at the 148.31 mark. This market looks fair enough, considering the appearance of a green price candle above the GMMA indicator lines. Although the MACD indicator seems a bit divergent from the previously noted outlook, the lines of the indicator are still above the equilibrium level with a slightly upward bearing.
The mentioned divergence comes from the appearance of the indicator bars above the equilibrium level and their decreasing length. Nevertheless, considering the positioning of the last price candle here, traders can still expect that price action in this market will likely extend the upside retracement towards the 149.00 mark at least.
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