The US dollar leaped at the news of the US election results. This has had some notable effects on the major FX pairs. While some of the pairs saw a bearish reversal, others saw a bullish reversal. Let’s take a more careful look at each of these pairs below.
EUR/USD: Bearish
The EUR/USD has seen some moderate upside retracement ever since its price action rebounded off the 1.0784 support level. Yesterday’s trading activity ended in the green with moderate profits. However, the US dollar soon gained massive momentum following the election results. As a result, the corresponding price candle to the session plunged the market to multiple support levels.
Although the Stochastic Relative Strength Index (Stochastic RSI) indicator lines have taken a bearish trajectory, the lines of the indicator remain generally above the 80 mark. This suggests that downward forces are quite strong in this market and may still bring this major FX pair below the 1.0700 threshold level.
GBP/USD: Bearish
Price activity in the GBP/USD daily market bears some resemblance to the EUR/USD market. This major FX pair suggests that the US dollar has gained massive momentum spontaneously against the British pound. Consequently, the pair fell through the 1.2907 support level. However, the Pound seems to have absorbed the bearish shock better than the Euro, seeing that the price of the pair remains above the 200-day Moving Average (MA) line.
As a result, the Stochastic RSI lines can be seen still having a generally upward trajectory, with the leading line of the indicator now deflected towards a bearish crossover. Nevertheless, it does seem imminent that prices may fall even lower given the position of price action below most of the MA lines. Consequently, this market may soon hit the 1.2800 price level.
USD/CHF: Bullish
The USD/CHF market has benefited considerably from the momentum gain of the US dollar. Today’s trading activity has printed massive gains for this major FX pair. The last price candle on the chart has punched its way through the psychological resistance level at the 0.8700 mark. This pair currently trades above the 20-, 50-, and 100-day MA lines.
At the same time, the Stochastic RSI lines can be seen to have only converged for a bullish crossover in the oversold region. Considering the technical indications in this market, it seems upside forces have a strong backing, seeing that prices have moved considerably when the RSI lines can be seen to have just converged. Therefore, this market may still head through the 0.8800 resistance level.
USD/CAD: Bullish
Also, the USD/CAD daily market can be seen to have significantly rebounded upward after just dipping below the 20-day MA line. This major FX pair has also seen a massive upside rebound; however, it seems that the Canadian dollar was able to force some downward contraction on this pair.
Be that as it may, the pair now trades above all the MA lines, bringing the price action in this market back above 1.3449. Meanwhile, the Stochastic RSI lines can be seen still falling into the oversold region while the pair seems to have recovered from losses seen in the previous session. Be that as it may, it appears that the US dollar may still have enough bullish momentum to extend the upside retracement toward the 1.4000 price mark.
AUD/USD: Bearish
Although the AUD/USD has dipped significantly in the ongoing session, it could be seen that upside forces were able to bring some recovery to this major FX pair. Price activity in this market previously rebounded off the support at the 0.6545 price level, and the market had progressed through the 200-day MA line. It could be seen that the market plunged considerably in today’s trading activity.
However, the Australian dollar was able to cause an upward contraction in the session, bringing the market back above the once-broken support level at the 0.6545 mark. Nevertheless, this market trades below all the MA lines. The Stochastic RSI lines are still rising upward past the 50 level of the indicator. Meanwhile, the 20- and 200-day MA lines can be seen converging above the current price of the pair. Therefore, it is technically correct for traders to aim at the support level at the 0.6500 mark, seeing that bears are maintaining dominance.
EUR/JPY: Bearish
The EUR/JPY market remains above the support formed by the interacting MA lines. This major FX pair hasn’t been able to break through the resistance formed by the 166.00 price level. This resulted in price action consolidating below this threshold level. However, it appears that the momentum gain in the US dollar has spread to the Japanese yen.
This resulted in the formation of a bearish price candle for the ongoing session. Furthermore, the Stochastic RSI lines are now falling through the 50 level of the indicator. Consequently, this suggests that downward forces will push the market lower toward the 164.00 price level. However, the 20- and 100-day MA lines can be seen converging for a bullish crossover. This may offer some resistance to downward retracement in this market.
USD/JPY: Bullish
Surely, bulls in the USD/JPY daily market can be seen benefiting from the bullish momentum in the US dollar. This major FX pair seems to have rebounded promptly off the 200-day MA line. The last two trading sessions saw prices descend through the 152.00 threshold level, but the ongoing session massively advanced the market through the 154.00 price level.
As of the time of writing, the pair trades at the 154.17 price level while it’s positioned above all the MA lines. Also, the Stochastic RSI lines can be seen already delivering a bullish crossover in the oversold region. Considering the movement of the Stochastic RSI lines, it appears that upside forces may be quite strong and may still propel the market through the 155.00 and toward the 156.00 mark.
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