For this 03/14/2022, we look at currency pairs making waves from Technical Analysis Perspective.
Traders of different trading time frame philosophies would agree that it is important to gain an understanding of a currency pair's price action. This importance varies among traders, but it still remains important as traders look to buy low and sell high. Every trading day presents new opportunities to examine price movement (technical analysis) in the FX Market.
Let’s examine the currency pairs that have made the most recent technical analysis moves with various indicators. This is not an exhaustive list, this is just a selection of sovereign currency pairs that have made a significant movement or have made a shift. None of the below is financial advice, you are encouraged to do your research before trading or investing in any securities. FX positions and leveraged trading carries risk of loss of investment principal.
Currency Pair #1:AUD_USD
The hourly chart of AUD_USD has the Relative Strength Index (RSI) dropping below 25 in the previous trading hour, which indicates that the stock is oversold. This is commonly used in conjunction with other indicators to confirm a possible situation where one would go long on this currency pairing or take profits on a short position.
Currency Pair #2:CHF_JPY
The hourly trend is an upswing and the Bollinger Bands support this case, the price is contained between the first and second Standard Deviation levels above the mean.
CHF_JPY is appearing bullish according to the Moving Average Convergence Divergence (MACD) indicator on a daily chart with the common default settings of a 12 day Exponential Moving Average less the 26 day Exponential Moving Average with the 9 day Exponential Moving Average to be used as the Signal Line. The signal line crossed above the MACD Line and the MACD Histogram crossed above the Zero Line in the previous trading day on the daily chart.
Currency Pair #3:GBP_USD
CHF_JPY's hourly trend is bullish and the Bollinger Bands support this as the price is contained between the first and second Standard Deviation levels above the mean.
Examining the Moving Average Convergence Divergence (MACD) for CHF_JPY, the signal line crossed above the MACD Line and the MACD Histogram crossed above the Zero Line in the previous trading day on the daily chart. This is a bullish signal, especially when combined with an upward price trend.
Currency Pair #4:NZD_JPY
The daily chart of GBP_USD has the Relative Strength Index (RSI) dropping below 25 in the previous trading day, which indicates that the stock is oversold. This is commonly used in conjunction with other indicators to confirm a possible situation where one would go long on this currency pairing or take profits on a short position.
Currency Pair #5:USD_CHF
In this examination of NZD_JPY's daily candlestick chart (D) it has a Relative Strength Index (RSI) that is above 75 in the previous trading day. As far as a 14 day RSI is concerned, it is in overbought condition. When used with other indicators and price action, it could help in providing the conditions where one would take a short position or take profits from a long position.
Currency Pair #6:USD_JPY
The Moving Average Convergence Divergence (MACD) indicator for USD_CHF on a hourly chart has shown a bearish signal, the signal line crossed below the MACD Line and the MACD Histogram crossed below the Zero Line in the previous trading hour on the hourly chart.