The sentiment surrounding the USD improved during yesterday’s (Tuesday) trading session, and it has impacted most of the major FX pairs. Traders should expect more movements as more fundamentals, such as the US PCE and the US GDP, are set to emerge from the US in the days ahead.
EURUSD: Bearish
EURUSD has been negatively impacted by the improved sentiment of the US dollar. This major FX pair has experienced a moderate upside retracement that spanned from February 14th to 26th. However, the market changed direction in the previous session when price action bounced off the resistance constituted by the uppermost limit of the Bollinger Bands.
The current session has so far produced further moderate downward corrections. Yet the market continues to trade above the middle limit of the Bollinger Bands. Also, the Stochastic Relative Strength Index (SRSI) lines have been delivered. Afterward, the lines of this indicator are now trending downward, signaling a downward correction at the moment. Traders can anticipate a downward correction towards the 1.08000 mark.
GBPUSD: Bearish
The GBPUSD pair has also been impacted by the improvement in the US dollar momentum. The market has seen moderate upside correction in recent trading sessions. This seems to be largely due to the lackluster performance of the USD in recent times. Since the dollar picked up some momentum during yesterday’s trading session, price action bounced off the ceiling at the uppermost band of the Bollinger Bands indicator.
Today’s session has continued the downtrend only more strongly, considering the size of the corresponding price candle. Likewise, the SRSI indicator lines have crossed into the overbought region. Subsequently, the resulting lines of the indicator have continued downward, confirming the downward correction in the market. At this point, trading activity is barely hanging above the equilibrium level of the indicator. Therefore, traders can anticipate a downward correction to reach the 1.2600 mark.
USDCHF: Bullish
USDCHF has witnessed a significant bounce off a technical baseline. The pair had consolidated above the 0.8800 mark before punching its way through that support level. However, price action in this market had halted downward corrections in the previous session after a face-off between market forces, considering the appearance of the corresponding price candle.
Today’s session rebounded strongly as price action reached the middle limit of the Bollinger Bands. Simultaneously, the SRSI indicator lines have converged for a bullish crossover in the oversold region. Summing the behavior of price action on the chart with technical indicators on this market, one can speculate that the market may approach the 0.8850 mark.
USDCAD: Bullish
The USDCAD has also benefited from the improved mood of the US dollar. The price has maintained an upward trajectory over the previous session, despite the poor performance of the US dollar. This must have been due to the poorer performance of the Canadian dollar.
Price action has surpassed the middle band of the Bollinger Bands indicator. The ongoing session has risen further above the middle limit of the Bollinger Bands. Meanwhile, the SRSI indicator lines are rising rapidly upwards towards the overbought region. The behavior of the RSI line suggests that the volatility is moderate and prices may progress further upwards, despite the minimal printed gains at this point. Consequently, traders can still anticipate a further upward climb towards the 1.3572 mark.
AUDUSD: Bearish
AUDUSD has rebounded downward off the ceiling of the Bollinger Bands indicator. This occurred during the second trading session of the week. The better mood of the US dollar has further advanced this major FX pair in its downward path. Price activity has fallen below the Bollinger Bands MA.
In addition to the downward crossover on the RSI indicator, it could be assumed that the market has taken a strong bearish path. The ensuing lines of the SRSI indicator seem fairly extended towards the oversold region. Therefore, one can speculate that the pair may attempt to break the support at the 0.6500 mark.
EURJPY: Bearish
EURJPY price action has hit the uppermost band of the Bollinger Bands in the previous session. This seems to have resulted in price action correcting downward in the ongoing session. However, going by price behavior in previous sessions, we can see that a downward correction of the uppermost limit has been a usual occurrence. The market has been quick to resume its upward path afterward.
The ongoing session remains above the middle limit of the Bollinger Bands. Likewise, the SRSI indicator lines have delivered a jerky crossover. While most signs here suggest that the market may proceed downwards, the jerky behavior of the RSI and the fact that price action remains above the middle limit of the Bollinger Bands suggest that upside forces have a fighting chance to reach the 164.0 mark.
USDJPY: Bullish
USDJPY has managed to remain above the 150 mark over the recent period. This happened despite the attempt made by headwinds to cause a significant downward correction in price.
The last price candle on this chart has brought notable recovery to this FX pair. This has refocused the market towards the 151.00 resistance price mark. In fact, the current price of the pair is just below the 151.00 mark by a tiny bit. Meanwhile, the SRSI indicator lines have performed a bullish crossover. This has further suggested that upward momentum has grown stronger and may have the strength to advance the pair further towards the 152.00 mark.
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