The US dollar has lost momentum, affecting most major FX pairs. This seems to be the aftermath of the cautious market mood as investors weigh the likelihood of one or two rate cuts this year. This has significantly impacted the greenback and hindered upward traction in the market. Let’s examine each of the pairs.
EUR/USD: Bullish
EUR/USD has sustained itself above the 1.0800 mark, benefiting from the cautious market mood. Consequently, trading activity remains above all the Exponential Moving Average (EMA) lines.
The current session has posted minimal gains but shows good technical prospects in the meantime. Meanwhile, the SRSI indicator lines reflect a downward trajectory toward the 80 level. Nevertheless, since price action is still above the EMA lines, the market has upside potential toward the 1.0850 price level.
GBP/USD: Bullish
The GBP/USD market closely resembles the EUR/USD market. This major FX pair has presented minimal profits but is considered positive as it has breached the previous downward correction from the last session. The market remains above the EMA lines at a significant distance.
Simultaneously, the SRSI indicator lines are still in the overbought region but have a downward bearing. Traders may still hope for upside corrections towards the 1.2900 mark since the price movement has breached its downward correction. However, fundamentals may influence the price towards the 1.2900 or 1.2730 levels.
USD/CHF: Bearish
USD/CHF has seen a sharp downward correction from its previous upward path, which was breached over the past two sessions. Downward forces seem to have resumed, pushing the market lower. Today’s session has further brought the market below the 20-day EMA curve as it now tests the 100-day EMA line.
The SRSI indicator lines continue to descend into the oversold region, with the leading and lagging lines close together, indicating dwindling volatility. This may keep the market above the 200-day EMA (0.8947) before any market-influencing fundamentals arrive.
USD/CAD: Bearish
USD/CAD has resumed its downward trajectory, which started six sessions ago when price action pierced the 20-day EMA line. Four sessions ago, upward forces attempted to change the odds, delivering a sharp rebound off the 1.3600 threshold.
However, it appears that the market will continue its downward correction due to the cautious mood surrounding the US dollar. Over the past two sessions, the major FX pair has been minimally correcting downward. Furthermore, the SRSI lines are converging for a bearish crossover in the oversold region, indicating that the market may continue downward toward the 1.3600 support level.
AUD/USD: Bullish
The AUD/USD pair has sustained trading above the 0.6700 price level but is struggling to rise past the 0.6750 threshold. Multiple small-priced candles have appeared just below this level over the past two sessions.
Meanwhile, the SRSI lines are retreating towards the 80 level. Despite this, price action remains above the 0.6750 threshold. Should any negative fundamentals emerge from the USD side, the market may press towards the 0.6800 resistance.
EUR/JPY: Bullish
Buyers in the EUR/JPY market have enjoyed a bullish trend since last week, keeping the price above the previous resistance level of 171.55. Now, the market faces the challenge of breaking through the more significant resistance around the 175.00 level. Market forces from both sides appear fatigued, but bullish forces strive to maintain control, as indicated by recent price candles.
The market remains above the Exponential Moving Average lines. The SRSI indicator lines are on a downward path, but closer inspection reveals they are converging. Additionally, the latest price candle has breached the resistance at 174.71, indicating that the market is gaining upward momentum and may soon break through the 175.00 resistance to approach the 176.00 level.
USD/JPY: Bullish
The USD/JPY market is continuously propelled by upward forces, despite the US dollar being in a cautious mood. This may be due to the JPY side of the market having a more dovish monetary policy stance. This major FX pair rebounded off technical support at the 160.00 price mark and has continued upwards since then.
Meanwhile, the SRSI indicator has fallen deep into the oversold region due to the shallow downward correction in recent trading sessions. The indicator is now converging for a bullish crossover, while the market has already taken off toward higher levels. This has created more room for upward forces to develop as the market trends toward the 162.50 threshold.
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