The US dollar, following the FOMC meeting, appears to be aligning with market expectations. As a result, the Fed is expected to keep the rate cut around 2.25%–2.50%. Meanwhile, the JPY continues its aggressive rally, impacting several major FX pairs this week.
EUR/USD: Bullish
The EUR/USD market continues to experience a downward correction. This may be due to the euro maintaining a relatively calm stance on a fundamental basis, while the USD has become more active, bolstered by the FOMC meeting’s outcome. Price activity in the EUR/USD market has landed exactly on the 200-day Exponential Moving Average curve.
Additionally, the Stochastic Relative Strength Index (SRSI) lines are in the oversold region and seem to be converging. Coupled with expectations of new data from the eurozone today, this hints at the possibility of the 1.0807 mark.
GBP/USD: Bearish
The US dollar has been strong enough to push the pound down, bringing the GBP/USD market to test the support level at 1.2800, a previously broken resistance. The current price candle suggests strong downward forces at this point.
Considering the SRSI indicator, one might conclude that the market is likely to head downward. The SRSI lines are intertwined in the oversold zone and are not indicate any potential for an upward rebound of the reached support. Consequently, the market may head towards the 1.2760 level.
USD/CHF: Bearish
While the USD has been a headwind in the previously examined major FX pairs, it seems to be struggling in the USD/CHF market. The Swiss franc has maintained a strong stance against the US dollar, driving the market below the EMA lines.
Today’s trading activity has pushed the market below the 50 level of the Fibonacci Retracement tool. Similarly, the SRSI indicator line is trending downward in the oversold zone. Consequently, this major FX pair may soon hit the 0.8700 mark as trading continues.
USD/CAD: Bearish
In yesterday’s trading session, the USD/CAD daily market saw a significant reduction in its medium-term gains. This movement appears to be driven by the FOMC meeting’s outcomes aligning with prior market expectations, while the Canadian economy has shown notable improvement in recent months.
Despite this, trading remains above all Exponential Moving Average (EMA) lines. Additionally, the Stochastic Relative Strength Index (SRSI) lines have sharply declined toward the 60 level. However, today’s trading has shown only minor resistance to the downward trend. Therefore, traders should monitor fundamentals that might support an upward rebound towards the 1.3850 level.
AUD/USD: Bearish
Following a steep decline in the AUD/USD market, which brought the market from its two-month high to trade below the 0.6550 mark, this major FX pair consolidated for about four sessions. However, the ongoing session suggests that price action may fall to lower support levels.
The current price candle indicates that bears are still in control with considerable momentum. Similarly, the SRSI indicator lines are moving sideways in the oversold region. Without a strong impetus from the SRSI, traders may want to stay bearish towards the 0.6599 mark.
EUR/JPY: Bearish
The JPY continues to exert significant downward pressure on some major FX pairs, including EUR/JPY, which has been plunging. The market broke through the support level at 163.00, and today’s trading activity has continued that trend.
Although the ongoing session shows some upside contraction, the possibility of a continued downward retracement remains high. The SRSI indicator lines continue to drag sideways at the 0.00 level in the oversold region. Consequently, traders might want to target the 160.00 mark.
USD/JPY: Bearish
The US dollar hasn’t been spared from the JPY’s great onslaught. This major FX pair fell below the 152.00 support level during yesterday’s trading session, bringing the USD/JPY to trade below all the EMA curves. The last price candle appears as a hammer candle.
However, the SRSI indicator lines are hugging the 0.00 level. Additionally, the 20- and 100-day EMA lines are converging above price activity, technically indicating a strong bearish outlook for this market. Therefore, traders can aim for the 147.00 mark.
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