The US dollar has managed to maintain bullish traction. This perceived bullishness has been fueled by economic growth and improved retail sales. Consequently, the US dollar has remained strong against its pairs, sustaining the trend in most major FX pairs. Let’s take a closer look at each of them below.
EUR/USD: Bearish
The EUR/USD pair has been on a sharp downward correction. However, it saw a strong upward retracement in the past two sessions. This move occurred below all Moving Average (MA) lines and was easily overwhelmed by bearish pressure. The current price candle signals a trend continuation as it’s significantly red.
Meanwhile, the Stochastic Relative Strength Index (RSI) lines are still rising from the oversold region following the recent upside rebound from the 1.0500 threshold. However, it appears the market may retest the 1.0500 support level for a potential break.
GBP/USD: Bearish
Downward forces are also prevailing in the GBP/USD daily market. Price action rebounded from the 1.2600 support level in the past two sessions. However, the pair couldn’t make significant progress, likely due to its position below all MA lines. Additionally, these MA lines are trending towards another crossover above price action.
The last price candle hints at a potential continuation of the downward correction. Similar to EUR/USD, the Stochastic RSI lines are rising from the oversold region. Nevertheless, downward forces seem dominant, and the market may break through the 1.2600 support level.
USD/CHF: Bullish
In the USD/CHF daily market, bulls took a break in the past three sessions. However, they resumed action before the market fell below critical levels. The current price candle found support just above the 200-day MA line. Today’s trading session has kept the major FX pair above this critical support level, maintaining the upside correction.
Meanwhile, the Stochastic RSI lines are still falling towards the oversold region. However, considering the position of price action, the upside correction may continue despite the trajectory of the Stochastic RSI lines. Therefore, trades can still be positioned for a potential break of the 0.8900 resistance level.
USD/CAD: Bullish
The USDCAD daily market exhibits similarities to the USDCHF market. A key difference lies in the duration of the downward correction, which spanned only two sessions for this major FX pair. The current session has witnessed an upward rebound testing the 1.4000 price level as resistance.
Notably, the market remains above all Moving Averages (MAs), suggesting potential for further upside corrections. While the Stochastic RSI lines are descending deeper into the oversold region, the market’s rebound above a significant level indicates a possible continuation of the uptrend. Therefore, the market may extend its upward trajectory towards the 1.4000 psychological resistance level.
AUD/USD: Bearish
The AUDUSD market appears to be entrenched in a downtrend. Since mid-September, the market has been forming lower lows. A recent rebound off the 0.6445 support level was followed by an upward move, but the price quickly reversed downward after testing the 0.6545 resistance level.
The current bearish candle suggests a potential return to the 0.6445 support level. While the Stochastic RSI lines are still rising, the upward momentum seems to be waning. Therefore, traders should be prepared for a potential decline to the 0.6445 support level.
EUR/JPY: Bullish
Favorable European fundamentals have provided moderate upside momentum to the EURJPY market, keeping it above the 163.50 level. The price action is currently above the 50- and 100-day Moving Averages (MAs).
While these indicators are approaching a potential bearish crossover, the 20-day and 200-day MAs are above the price action, offering resistance to the upside. The Relative Stochastic Strength Index (RSI) lines are rising from the oversold zone, albeit with some volatility. This technical setup suggests that the market may continue its uptrend towards the 164.50 and 165.00 price levels.
USD/JPY: Bullish
The USDJPY market has maintained a bullish trend since rebounding off the 140.00 support level on September 11th. The current strongly bullish candle indicates robust upward momentum and suggests that the 154.00 support level has held.
The major FX pair remains above all MAs, and the Stochastic RSI has just delivered a bullish crossover above the 20 mark. This signals potential for further upward momentum as traders and investors maintain a bullish outlook on the pair. Therefore, the market may rise towards the 157.00 threshold.
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