The fear of the Fed sticking to a cautious path longer than expected concerning the interest rate has reinstated bearish sentiments in some major FX pairs. Meanwhile, some are capitalizing on this as a tailwind, as their price action has been able to maintain an upward trajectory. Let’s take a closer look at each of these markets.
EURUSD: Bullish
Price activity in the EURUSD market continues toward higher marks, albeit at a reduced pace. However, the market can generally be regarded as maintaining an upward path since the last rebound off the 1.08000 mark. Also, the last price candle here is green and has appeared above the 20, 50, 100, and 200-day Exponential Moving Average (EMA) lines.
The size of the last price candle seems small, delivering a very small profit. However, the Stochastic Relative Strength Index (SRSI) lines can be seen still rising. This aligns with the fact that the market is in an uptrend. As a result, traders can target the 1.0900 mark.
GBPUSD: Bullish
This major FX pair has held on to an upward trajectory despite significantly reduced volatility. The GBPUSD market continues to approach a new psychological resistance price mark. Price action in this market can be seen above all the EMA lines, supporting the notion that the market is maintaining an upward path. In the previous session, it could be seen that price action had attempted to break this resistance.
However, that price level seems strong as the market rebounded off it. The appearance of the last price candle here suggests that bulls are retaking the challenge of trying to break that resistance. The Moving Average Convergence Divergence (MACD) is now above the equilibrium level. Although the MACD isn’t suggesting that the uptrend is volatile, traders can still approach the 1.2800 mark.
USDCHF: Bearish
The USDCHF is one of the major FX pairs under pressure due to the bearish sentiment surrounding the US dollar. Trading activities are below the EMA lines. The last price candle appears quite small, presenting bears with only minimal profits. This suggests that upside forces are trying to resist further price declines in this market.
Also, the MACD curves are above the equilibrium level. The bars of the MACD are still appearing above the equilibrium level. However, the color of the bars is pale green, indicating that downward forces will likely gain more momentum. Combining this with prevalent fundamentals surrounding the US dollar, traders stand a chance of printing more profits towards the 0.9100 mark.
USDCAD: Bearish
The USDCAD seems to have a stronger bearish stance compared to the previously examined major FX pairs above. Here, price action has been falling below the EMA lines for the past three sessions. The previous session attempted to return the pair above all the EMA lines but failed.
The ongoing session has appeared bearish and reinstated bearish sentiment in this market. Likewise, the MACD indicator lines can be seen converging for a bearish crossover below the equilibrium level, pointing out that bears are likely to gain more momentum in this market. At this point, it’s looking like the market may descend towards the 1.3600 mark.
AUDUSD: Bullish
The AUDUSD pair has been able to stay afloat above the EMA indicator lines. Recent price action has revealed that the market has been moving back and forth in a zigzag pattern within a narrow range. However, upside forces have been able to regain control, subsequently returning the market to an upward path.
Here, we can see that the last price candle has brought the market higher above the 0.6600 mark following the previous downward correction. The bars of the MACD indicator are now pale red, indicating that downward forces are weaker. The lines of the indicator are now sideways above the equilibrium level. Although this isn’t very optimistic, it maintains some hopes for upside forces, hinting that they may propel the market toward the 0.6700 mark.
EURJPY: Bullish
Price activity in EURJPY has adopted a stronger bullish tone. Observing the market, bulls have sustained this impressive performance over a medium period. The market has surpassed another psychological level at 171.00. The latest price candle indicates further potential for gains, showing no upper shadow and a lower shadow.
Trading remains above all Exponential Moving Average (EMA) curves. The Stochastic Relative Strength Index (SRSI) indicator lines are trending upward in the overbought region. Consequently, traders are continuing to use bullish Forex signals on the pair, anticipating a breakthrough above the 172.00 mark.
USDJPY: Bullish
The USDJPY market is maintaining an upward path towards a new psychological level. The market seems positively choppy. The last price candle can be seen appearing as a dash. However, what it lacks in size, it makes up for by leapfrogging higher than the previous one. Additionally, the market continues upward above the EMA curves.
Furthermore, the MACD bars are now taking an upside path above the equilibrium level. Also, the bars of the indicator appear solid green, above the equilibrium level. By implication, this hints that bullish momentum will gain more strength, and we may soon see this FX pair rising through the 158.00 price mark.
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