The improved Jobless Claims in the U.S. continue to assist the greenback in staying strong against its counterparts. This has had a noticeable effect on most of the major FX pairs. Let’s take a closer look at each of these pairs below.
EUR/USD: Bearish
The EUR/USD has continued its downward correction into the ongoing session. Headwinds have been in control of this market for two weeks. The downward correction seems to have intensified recently for this major FX pair, keeping price action near the lowest limit of the Bollinger Bands indicator.
Additionally, the Stochastic Relative Strength Index (Stochastic RSI) lines have continued to drag sideways in the oversold region. Technically, this suggests that the pair will likely extend its downward correction. As a result, traders can target the support level at 1.0784 for short-term gains.
GBP/USD: Bearish
GBP/USD’s price action has broken the support level at 1.3043 and the more psychological support level at 1.3000. The support at 1.3043 served as a short-term support level, with price action consolidating briefly above this level. This major FX pair broke that support in the previous session and has moved lower, with price action now below 1.3000.
The last price candle has appeared green but has contracted significantly due to downward pressure. The Stochastic RSI lines have continued to drag sideways in the oversold region. With price action now at the lowest limit of the Bollinger Bands, the market may soon hit the 1.2850 and 1.2800 levels.
USD/CHF: Bullish
The USD/CHF market continues to rise, even after breaching the resistance at the 0.8600 level. Price movement has stayed near the upper limit of the Bollinger Bands indicator. Although the last price candle appears solid green, it hasn’t brought much increase to the pair.
Meanwhile, the Stochastic RSI indicator has risen into the overbought region, but the lines seem poised to move sideways. It’s worth noting that the last price candle has a longer lower shadow, indicating that upward forces are still active and may propel the major FX pair toward the 0.8700 level.
USD/CAD: Bullish
USD/CAD retains a strong stance against downward pressure. The major FX pair has been in an upward retracement for nearly two weeks. However, recent sessions saw a minor downward correction for two trading days. Currently, price activity seems to have regained its upward trajectory, portraying upside forces as strong.
The last price candle appears solid green, almost recovering from the downward correction of the previous two sessions. Meanwhile, the Stochastic RSI lines are above the 80 mark but have a general downward trajectory. Nevertheless, traders can set their targets at the 1.3850 level.
AUD/USD: Bearish
While AUD/USD has seen an upward rebound in today’s trading activity, the overall trajectory suggests that the market may continue downward. Trading activity remains below the middle limit of the Bollinger Bands and the 0.6700 level.
The last price candle suggests downward forces are resisting an upward retracement to the 0.6700 and 0.6800 levels. However, the Stochastic RSI lines remain converged in the oversold region, hinting at a possible continued upside retracement. It is advised that traders follow the overall trend towards the 0.6600 level.
EUR/JPY: Bearish
The EUR/JPY pair continues to face strong downward pressure for the second consecutive session below the 163.50 level. Price movement remains above the 162.00 level but has been unable to progress past 163.50.
Meanwhile, price action stays above the middle limit of the Bollinger Bands, but the Stochastic RSI indicator lines are descending towards the 80 mark. Considering that downward forces are pressuring this pair at the 163.50 level, the major FX pair may soon be forced to descend toward the 161.50 level.
USD/JPY: Bullish
The USD/JPY market today seems less correlated to the EUR/JPY market than usual, likely due to the U.S. dollar providing impetus for most major pairs. Price action shows clear signs that it will likely continue moving upward. The last price candle extended the upward retracement that began in the previous session, returning the pair to an upward trajectory above the middle limit of the Bollinger Bands.
The Stochastic RSI lines are still trending in the overbought region but seem poised to move sideways, allowing upside forces to build more momentum. This may propel the market towards the 150.50 level.
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