Risk flow continues to impact the US dollar, which has supported some of the major FX pairs in their bullish recovery. There has been initial intrigue as the US Initial Jobless Claims improved from previous figures. Let’s take a closer look at the market to see how these major FX pairs may fare ahead of the weekend break.
EUR/USD: Bullish
The EUR/USD has seen decent price increases over time since its price action regained bullish traction after dipping below all the Exponential Moving Average (EMA) lines. The market corrected downward after hitting the psychological resistance at the 1.1000 mark, but upside forces were able to sustain the market above all the EMA lines.
The Stochastic Relative Strength Index (SRSI) lines are currently moving sideways around the 80 mark of the indicator. Fortunately, it appears that market upside forces are leading and are likely to retain the lead into the weekend. This may allow the market to re-approach the 1.1000 mark.
GBP/USD: Bullish
The GBP/USD market is showing some good upside corrections, with the major FX pair rising through the 100-day EMA line from its base near the 200-day EMA. The ongoing session has continued to record a continued upside correction toward the 50-day EMA curve.
Meanwhile, the SRSI indicator lines have delivered an upside crossover in the oversold region. With the market now heading toward the 50-day EMA, the trajectory of the SRSI may guide traders toward the 1.2800 price level. A break above this technical resistance may lead to more movement.
USD/CHF: Bearish
Downward forces have rallied significantly in the USD/CHF market, causing a massive price plunge. Price movement bounced back after dipping below the 0.8500 mark four sessions ago, leading to a sharp and notable upside correction through the 0.8655 price level.
Nevertheless, the market remains below all the EMA curves, and the ongoing session has produced a minimal downward deflection in price movements. This downward deflection in price has had no effect on the SRSI indicator lines, which continue to rise into the overbought region. Considering these factors, it appears that this major FX pair may still approach the 0.8700 mark ahead of the weekend break.
USD/CAD: Bearish
Risk flow continues to work against the USD/CAD, causing losses for bullish traders. This major FX pair reversed its upward trajectory after its price action surfaced above 1.3849 and through the 1.3900 mark.
The ongoing session demonstrates that market forces are at odds, as this price candle has appeared as a doji, with its body just above the 50-day EMA line. Meanwhile, the SRSI lines have dropped to the depths of the indicator. Given this, one might anticipate a bullish reversal based on the appearance of the corresponding price candle in the ongoing session. However, it seems safer to go with the trend of the market toward the 1.3700 price mark.
AUD/USD: Bearish
The AUD/USD market has also benefited from the risk flow surrounding the US dollar, causing the pair to resurface above the 20-day EMA curve. However, no sooner did price action surface above the 20-day EMA line than the 50-day EMA line presented a strong resistance, resulting in a minimal downward correction.
Nevertheless, this major FX pair continues to trade above the 20-day EMA line, while the SRSI indicator lines maintain a steep upward trajectory. The gap between the leading and lagging lines of this indicator points to healthy market volatility. Consequently, traders can aim for a break above the 0.6600 mark ahead of the weekend.
EUR/JPY: Bearish
The EUR/JPY market has seen moderate recovery after its price action dipped below the 156.00 price level. The market pulled back and continued upward. However, the market remains below the EMA lines. The ongoing session has produced a doji-like price candle above the 158.00 threshold, indicating that market forces are in a face-off.
Also, the 200-day and 20-day EMA curves are converging above the price action, forming a strong barrier to upward movement despite the indications arising from the SRSI trajectory. Although fundamentals from the EU seem strong, it may be safer for traders to target levels below the 164.00 price mark.
USD/JPY: Bearish
The USD/JPY market maintains a similar trading pattern to the EUR/JPY market, although with some forward characteristics. Price activity in this market remains significantly below the EMA lines. At this point, the 148.00 threshold forms a strong resistance to price movement, as evidenced by the last price candle testing it.
Meanwhile, the SRSI indicator lines are sticking to a strong upward trajectory. However, the crossover between the 20-day and 200-day EMA lines poses a strong barrier to upward correction through the 152.00 price level. Therefore, traders should target levels below this mark.
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