EURJPY
The EUR/JPY chart exhibits a pronounced bearish momentum, with the price sharply breaking below the key psychological support level of 163.899 and continuing its descent. The Ichimoku cloud indicates a strong bearish trend as the price remains firmly below the red cloud, signifying sustained selling pressure. The RSI is deeply oversold at 29.76, suggesting the possibility of a short-term corrective rebound; however, the overwhelming bearish sentiment could limit such recoveries. Volume analysis shows a notable spike in activity during the downward move, reinforcing the strength of the current bearish trend.
The breakdown below 163.899 opens the path toward lower support levels, with the immediate target likely to be around 159.000. This psychological level aligns with historical price action and could provide some temporary respite for the pair. Should the selling momentum persist, further declines toward 158.000 or below could be expected. Conversely, any recovery attempt would likely face resistance around the 162.410 region, which now acts as a pivotal point for bearish continuation or bullish reversal attempts.
Traders should monitor the RSI for signs of divergence or recovery, as well as any candlestick patterns around the key support levels to gauge the potential for a reversal. While the overall bias remains bearish, caution is advised as oversold conditions could trigger short-term pullbacks before the downtrend resumes.
GBPJPY
The GBP/JPY chart shows a clear downward trajectory, with the price breaking below significant support zones and accelerating its bearish momentum. The Ichimoku cloud is firmly red, reinforcing the dominance of sellers in this market. After failing to sustain its position above the 194.000 level, the pair has continued its decline, now approaching a critical support zone near 191.000. The RSI indicator, sitting at 28.40, indicates oversold conditions, suggesting that the selling pressure may be overextended in the short term. However, the persistent bearish momentum, supported by a rising volume on the recent declines, suggests that any potential rebounds could face strong resistance at previous support levels, such as 193.700 or the 194.000 handle.
The highlighted red zone represents a key supply area where sellers are likely to defend aggressively. Should the price breach the 191.000 level, further downside potential becomes apparent, with the next significant support likely around the 190.000 psychological level or lower. Conversely, for a meaningful bullish reversal, GBP/JPY would need to reclaim the 194.000 zone and hold above it, which seems challenging given the current market dynamics. Traders should watch for exhaustion signals on lower timeframes or divergence in momentum indicators to anticipate possible retracements. The overall bias remains bearish unless there’s a clear shift in market sentiment backed by strong bullish price action.
AUDCHF
The AUD/CHF chart reveals a consolidative price action within a defined range, with the current price at 0.57367 testing a key support area near 0.57300. The Ichimoku cloud has shifted to a bearish red shade, suggesting that sellers currently hold the upper hand. However, the price has oscillated in this range for several weeks, failing to establish a decisive breakout in either direction. The recent rejection from the 0.57894 level, a local resistance zone, emphasizes bearish pressure, while the RSI at 41.29 signals mildly oversold conditions but not extreme levels. This suggests that while there is selling momentum, it is not excessively dominant at this stage.
Volume analysis indicates declining participation during this sideways movement, hinting at potential market indecision or a buildup phase before a breakout. The 0.57690 level now serves as intermediate resistance, and a breach above it could trigger a retest of the 0.57894 zone. Conversely, sustained selling pressure below 0.57300 could accelerate a move toward the lower boundary of the broader range, potentially targeting the 0.57000 psychological level. Traders should closely monitor these key levels, as a breakout accompanied by strong volume could signal the next directional move for this pair. For now, the bias leans bearish, but the market remains range-bound and lacks a clear trend.
GBPCAD
The GBP/CAD chart indicates a recent bullish recovery as the price has rebounded strongly from a support level near 1.75912. This reversal followed a period of sustained selling pressure, with the price previously falling sharply within a bearish trend channel. The current level at 1.76930 suggests that buyers are attempting to regain control, supported by a breakout above the Ichimoku cloud, which has shifted into a bullish green shade. Volume has increased during the recent upswing, indicating robust participation in the move upward, which further validates the strength of the recovery.
The RSI is currently at 55.21, suggesting the momentum is favoring the bulls but is not yet in overbought territory, leaving room for further upside. The price is approaching the significant resistance at 1.78591, which has historically acted as a key level. A breakout above this level would likely signal a continuation of the bullish trend, with the next target potentially near 1.80000. However, failure to breach this resistance may lead to a pullback, with the support at 1.76227 likely to be tested again. Overall, the bias has shifted to bullish in the short term, but traders should watch for confirmation of a breakout or signs of a reversal at resistance to gauge the next directional move.
Leave A Comment