Market Analysis: Currency Pairs Update – March 18, 2025
In the latest trading sessions, various currency pairs have shown distinct movements, with the USD/JPY, USDCAD, AUD/USD, and NZD/USD all trending differently. This report provides an overview of current momentum, forecasts for upcoming sessions, and the potential implications for traders.
USD/JPY: Ascending Trend with Caution
The USD/JPY pair has experienced a rise, driven by an ascending corrective trend and consistent trading along a defined trendline. Notably, it has maintained levels above the 50-day simple moving average, which serves as a bullish indicator. The positive signals from the Relative Strength Index (RSI), despite nearing overbought conditions, suggest that there is still room for upward movement.
Current analysis notes that the pair is moving towards completing a Gartley harmonic pattern, which typically indicates a potential price reversal. Our forecast projects further gains for this currency pair, aiming for a resistance level of 150.10—this would mark the completion of the Gartley pattern—provided that the support level at 148.25 is upheld. Traders should exercise caution, however, as this pattern has bearish implications, highlighting the need to monitor the price for any reversal signals closely.
USDCAD: Recovering Amid Support Levels
In recent intraday trading, the USDCAD pair has seen slight increases, bolstered by strong support at 1.4280. The pair’s upward corrective trend appears to be a reaction to previous losses, with the RSI indicating an alleviation of its oversold condition through a positive crossover.
Despite the recent upswing, the currency pair remains under persistent bearish pressure, primarily due to its trading position below the 50-day simple moving average and the aftermath of a significant downward move. Our forecasts remain cautiously optimistic on an intraday basis, contingent upon the support level at 1.4280 holding firm. A successful retest of the resistance at 1.4350 may be on the horizon, should market conditions allow.
AUD/USD: Profit-Taking Influences Market Movement
The AUD/USD pair has marginally retreated in its latest performance as traders take profits from earlier gains. This shift in momentum is evident from the RSI, displaying signs of bullish exhaustion in light of a newly formed negative crossover. The pair continues to operate within a primary uptrend while abiding by a sub-trendline.
Despite the recent pullback, the prevailing analysis suggests a return to upward trends in the upcoming sessions, targeting the crucial resistance level at 0.6400. However, the support at 0.6355 must hold for this forecast to materialize. Traders should remain aware that profit-taking may persist, potentially leading to further corrective pullbacks aimed at consolidating this support level.
NZD/USD: Stable Yet Cautious at 3-Month Highs
The NZD/USD pair has stabilized in its recent trading, showing a firm grasp on the short-term bullish trend while adhering to a sub-trendline. This positive movement is further strengthened by trading above the 50-day simple moving average. Nonetheless, signs of a negative divergence have appeared on the RSI after reaching extremely overbought levels, leading to a natural cool-off as traders start to take profits.
Looking ahead, our forecast anticipates continued appreciation for the NZD/USD pair, targeting the resistance level at 0.5850. It is essential to recognize the potential for minor pullbacks as the ongoing profit-taking activities could temporarily cap its rise.
Conclusion
As the global currency market experiences fluctuations, understanding these movements and the underlying factors at play is crucial for traders. With distinct forecasts across the different currency pairs, staying informed and vigilant can be beneficial for navigating these market shifts. For more comprehensive analysis and precise trading signals, traders are encouraged to explore the Economies.com VIP Club to enhance their trading strategies.
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