Bullish Momentum May Not Continue For The U.S. Dollar

• 26 Oct 2017

USD/CHF

The USD/CHF pair has retraced from a previous price high in yesterday’s trading session. The pair had pushed beyond the upper Bollinger band on several consecutive occasions. RSI has also bounced off the 70 overbought line, beginning a downward trajectory. The next obvious price target is the 0.979 price level.

EUR/USD

The EUR/USD has broken the 1.18 price level and the mid-point on Bollinger bands. RSI has an upward trajectory and volume has been rising into the advance. A break above the zero line on MACD would provide weight to the uptrend.

Impact event: ECB Press Conference and Rate decision at 14:45-15:30 GMT+3 and the Catalan parliament session will impact Euro pairs.

USD/CAD

The USD/CAD has broken above the 1.276 price level which represents a previous market top. A doji candle in today’s session indicates that the bullish momentum may not continue. At the same time, RSI has stalled at the 70 overbought line and rising volume indicates increasing interest in the pair. However, it remains to be seen whether buyers have the conviction to push prices higher.

USD/JPY

The USD/JPY has also retraced after testing the 113.99 price level, which also marked a break of the upper Bollinger band. Simultaneously, RSI has snapped back from an overbought position with a sharp downward trajectory.  MACD remains in positive territory, therefore, the question is whether sentiment is bearish enough to push price action towards the 112.87 price target.