The US dollar has continued to outperform its rivals, as the Fed appears ready to maintain its hawkish stance. Additionally, CPI data showed a decline from the previous 2.5% to 2.3%. These factors have combined to sustain the pressure exerted by the US dollar, which has had noticeable effects on most major pairs and may dictate the market’s direction in the near term.
EUR/USD: Bearish
This major FX pair is experiencing sustained bearish pressure, driving the price of EUR/USD lower for almost two consecutive weeks. Downward momentum has renewed, causing the market to break below a roughly two-month-old support level.
Price action continues to hug the lower limit of the Bollinger Bands (BB). Additionally, the lines of the Stochastic Relative Strength Index (Stochastic RSI) indicator are dragging sideways in the depths of the oversold region. Consequently, traders may aim for the 1.0900 support level, with the potential for further decline if bears maintain their dominance.
GBP/USD: Bearish
The GBP/USD pair has also broken a medium-term support level that had held for more than two weeks. The pair peaked around the 1.3400 level when the US dollar regained strength and has since been trending downward. Today’s trading activity has broken the 1.3043 support level.
This break has set a renewed downward path, with price action heading toward the lower limit of the BB indicator. Similarly, the Stochastic RSI lines are dragging sideways deep in the oversold zone. As a result, this market appears poised to reach the psychological support level at 1.3000, considering the current trend.
USD/CHF: Bearish
Price movement in the USD/CHF daily market has been on an upward trajectory since rebounding off the 0.8415 support level. However, today’s session has interrupted this progress, marking a temporary halt to the upward momentum.
The 0.8600 level has presented a strong barrier to further gains. Despite this, price action remains significantly above the middle limit of the BB indicator, suggesting that upside forces still have potential. The Stochastic RSI lines are in the overbought region, with the terminal portion of the lines trending sideways. Therefore, traders may anticipate an upside continuation toward the 0.8650 price level.
USD/CAD: Bullish
The USD/CAD pair has continued its upward trend with strong bullish indications. The day began slowly, with bears leading the way as the market awaited the CPI data. However, after the CPI showed improvement, bulls took control, pushing the market higher.
The latest price candle stands tall above the psychological support at 1.3700, with no upper shadow and extending beyond the upper limit of the BB indicator. Meanwhile, the Stochastic RSI lines are dragging sideways near the 100 mark, suggesting that the market may continue its ascent toward the 1.3800 price level.
AUD/USD: Bearish
AUD/USD has continued its downward trajectory after reversing just above the 0.6900 threshold. Over the past week, this major FX pair has faced significant bearish pressure, forcing the market toward a three-week-old support level at 0.6700.
While price action remains under strong bearish pressure, the current session’s candle suggests that upside forces are attempting to stage a resistance. However, both fundamental and technical analyses suggest that this is unlikely, as the Stochastic RSI lines remain deep in the oversold region. This indicates that the market may head lower, targeting the 0.6680 level.
EUR/JPY: Bearish
The EUR/JPY market has seen a notable recovery since price action resurfaced above the 157.73 level. However, in recent sessions, the pair has been consolidating near the 163.50 resistance level. The ongoing session has turned bearish, suggesting that downward pressure may be gaining strength.
Despite this, price action remains above the middle bands of the BB indicator, providing some support. The Stochastic RSI lines are trending downward toward the 80 mark, indicating a potential break of the 162.00 support level, with the market possibly approaching the 161.50 mark in upcoming sessions.
USD/JPY: Bullish
While the USD/JPY market shares some correlation with EUR/JPY in facing rejection during today’s session, USD/JPY appears to have a more upward trajectory. Although the ongoing session has seen rejection, upside forces are acting on the price, resulting in a longer lower shadow on the candle.
The market remains close to the upper limit of the BB indicator, with price action significantly above the middle limit. The Stochastic RSI lines are trending sideways in the overbought region, suggesting that price action may attempt to break through the 150.00 resistance level.
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