The US dollar continues to face selling pressure following a dovish rate decision by the Fed. This has significantly impacted the price movements of most major FX pairs, propelling some to new highs, with further advances potentially on the horizon.
EUR/USD: Bullish
The EUR/USD pair resumed its upward trajectory six sessions ago. This upward movement has been maintained, with prices closing in on the psychological resistance level at the 1.1200 mark. Although momentum has slowed in the ongoing session, buyers remain in control, keeping the pair above all the Guppy Multiple Moving Average (GMMA) curves. Meanwhile, the Stochastic Relative Strength Index (Stochastic RSI) continues to rise into the overbought region, suggesting that the pair could close the week near the 1.1200 resistance level.
GBP/USD: Bullish
Like the EUR/USD market, the GBP/USD pair has also seen significant upside movement. However, the ongoing session appears more volatile, as indicated by the recent price candles. Over the past two sessions, volatility has persisted, with trading activity now above all the GMMA indicator lines. Additionally, the Stochastic RSI is progressing deeper into the overbought region, signaling strong momentum. As a result, traders may remain bullish, with potential targets at the 1.3350 and 1.4000 price levels.
USD/CHF: Bullish
Selling pressure on the US dollar has limited upside progress in the USD/CHF market. The pair initially attempted to bounce from the 0.8300 support level when the market anticipated a larger rate cut. However, those hopes were dashed, and the market now struggles below the 0.8500 mark. Price action is caught between the green GMMA lines. The Stochastic RSI shows a slight upward trajectory due to the green candle in the ongoing session. Traders may expect the market to approach the 0.8500 mark.
USD/CAD: Bearish
The USD/CAD pair recently resurfaced above the 1.3595 threshold in the past three sessions. However, the Canadian dollar regained strength, quickly pushing this major FX pair lower. Price activity now sits below all GMMA lines, which are beginning to cross above the price. With bearish sessions prevailing, the Stochastic RSI is falling below the 80 mark. In the near term, price action could fall toward the 1.3500 support level, presenting a potential target for bearish traders.
AUD/USD: Bullish
The AUD/USD bulls continue to benefit from renewed USD weakness, keeping the market on a bullish course since the price action bounced above the 0.6600 level. However, price movement is now encountering stronger resistance, causing the market to consolidate just above the 0.6800 mark. The Stochastic RSI is still trending upward into the overbought region, with the leading line already crossing the 80 mark, followed by the lagging line. Despite these contractions, the indicator suggests that the pair could advance toward the 0.6850 threshold.
EUR/JPY: Bullish
The EUR/JPY pair has experienced considerable upside recovery since the US dollar began its downturn. Price volatility has improved significantly, helping the market recover through several GMMA indicator lines. Price action has just crossed the 160.00 threshold, along with the first set of red GMMA lines. The Stochastic RSI is rising aligned with the current market trend, indicating that price action may find support above the 160.00 level. This could boost further movement toward the 165.00 and 170.00 thresholds.
USD/JPY: Bullish
The USD/JPY pair shows a strong correlation with the EUR/JPY market, with the key difference being the variation in volatility. The most recent price candle has moved above the green GMMA lines, following an upside rebound from a multi-month support level at the 140.82 mark. The Stochastic RSI is rising but remains below the 80 mark. However, the latest price candle has pronounced upper and lower shadows, reflecting some tension in the session. The leading line of the Stochastic RSI shows a slight deflection due to this tension. Traders should wait to see if the market shakes off this pressure and resumes upward toward the 145.00 threshold.
Get free access to our lifetime VIP membership. Join us here.
Leave a Reply