The US dollar seems to have picked up some strength during this week’s trading action. As a result, some of the major FX pairs have been able to print moderate gains. At the same time, some markets with counterbalancing forces have seen reduced profits. Nevertheless, there are some exceptions to this, with the likes of AUDUSD, which is technically swimming comfortably against the current as of the time of writing.
EURUSD: Bearish
The headwind created in the EURUSD market has been potent enough to keep price action correcting moderately downwards for the second consecutive session. More interestingly, this has occurred below the Exponential Moving Average (EMA) curves. Likewise, the lines of the Moving Average Convergence Divergence (MACD) indicator have fallen into the centerline (0.00 level) and continued to proceed slightly downwards. Meanwhile, the bars of the MACD are still appearing pale red, indicating that downward forces aren’t too strong. Nevertheless, the market seems headed toward the 1.06900 mark shortly. However, emerging economic news will play a key role in this.
GBPUSD: Bearish
The GBPUSD market stays trapped between the 20- and 50-day EMA lines. This has been so since yesterday, while today has produced minimal downward corrections. Despite the correction, the market stays just above the 50-day EMA line. As a result, it appears the mentioned indicator lines have turned into a support level. Simultaneously, the MACD lines have touched down at the equilibrium level via its leading line while turning sideways. The bars of the indicator lines can be seen appearing pale red below the equilibrium level. Technically, this major FX pair may consolidate should the support at the 50-day EMA hold. This may then lead to a rebound towards the 1.2720 mark.
USDCHF: Bullish
The USDCHF market has positively benefited from the improving mood of the US dollar. This major FX pair has further printed additional gains in today’s trading activities. The ongoing session has just placed the price of the pair above the 100-day EMA line. Simultaneously, it can be seen that an upside crossover has just been delivered on the MACD indicator, while its bars are still vivid green. This shows that the market has a higher chance of forging ahead above the EMA lines. This will increase the chances of the pair regaining lost ground above the 0.9000 mark.
USDCAD: Bullish
While the momentum picked up by the US dollar has been reflected in this major FX pair, it can be seen that the Canadian dollar presents some counterbalancing forces. Consequently, this has limited the magnitude of printed profits in the market. Although price action has been correcting upwards for the second consecutive session, it can be seen that the market remains below the 20- and 50-day EMA. Meanwhile, the MACD maintains that headwinds are quite strong in the market. The leading line of the same indicator can be seen dipping below the equilibrium level. This shows that the market may still recoil off the 50-day EMA lines at the 1.2673 mark, should no helpful fundamentals emerge.
AUDUSD: Bullish
While some of the major FX pairs struggle against the headwind created by the movement in the USD market, the AUDUSD shows a very bullish tone against this. This will likely be a result of a strong fundamental backdrop in the Australian economy. Price action today has rebounded strongly off the 20-day EMA lines, as the session seems to be under minimal pressure considering the appearance of the corresponding price candle. Meanwhile, the MACD is just at the initial stage of an upside crossover above the equilibrium level. Also, a tiny green price candle has just appeared above the equilibrium level. This suggests that the bullish momentum may be strong and may further propel the market upward towards the 0.6700 mark.
EURJPY: Bullish
Bulls in the EURJPY market have been on a winning streak since the start of the week. Consequently, this has propelled the market further above the 20-day Exponential Moving Average (EMA) lines. However, price movement in this market seems to have hit a wall at the 171.55 mark, as the market deflected slightly downwards off that resistance. Despite the deflection, the Moving Average Convergence Divergence (MACD) lines are still trending upward above the equilibrium level. Nevertheless, the last bars of the indicator are now pale green. However, traders may want to pay more attention to the appearance of the last red-price candle on this chart, as it appears as an inverted hammer. Technically, this signals a bullish reversal. And since price action is still above the EMA lines, the market has a higher chance of continuing toward the 172.50 price level.
USDJPY: Bullish
Price activity in the USDJPY market has been hovering around the technical resistance at the 160 mark. This has been in play since the beginning of the week’s trading activity. Today, however, has commenced with hopes that the market may eventually break the resistance at that price mark. The corresponding price candle has appeared green, although it has shown little movement in prices. Nevertheless, price action remains above the EMA lines. The MACD curves are still trending upwards above the centerline of the indicator, showing that the trend may continue, consequently breaking the resistance at the 160.00 mark.
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