The US dollar has experienced a weakening trend following the release of the US Jobless Claims data. This decline in the dollar’s strength has enabled some major FX pairs to recover, while others have continued their downward trajectory. Let’s delve into a detailed analysis of each pair.
EUR/USD: Bullish
The EUR/USD pair is poised to conclude the week on a positive note, with a significant upward movement. The market has successfully breached the technical resistance level at 1.0620 and continues to trade above this psychologically significant level.
Additionally, the current trading session is occurring above the 20-day Moving Average (MA) line. Furthermore, a bullish crossover has formed on the Stochastic Relative Strength Index (RSI) indicator, just above the 80 level. This confluence of technical indicators strongly suggests that this major FX pair will likely end the week higher, targeting the 1.0630 price level.
GBP/USD: Bullish
Similar to the EUR/USD market, the GBP/USD pair has continued its upward retracement. The latest price candle is approaching the 200-day MA line as a potential resistance level. Additionally, the current session marks the second consecutive session above the 20-day MA line.
Meanwhile, the Stochastic RSI lines have formed a bullish crossover, with both lines trending upward in the overbought region. Consequently, this major FX pair may attempt to push beyond the 1.2807 threshold as the week draws to a close.
USD/CHF: Bearish
The weakening US data has allowed downward pressure to further propel the market lower. The latest price candle is bearish and indicates increasing downward momentum. As a result, trading activity continues below the crossed 20- and 200-day MA lines.
Likewise, the Stochastic RSI has formed a bearish crossover below the 20 mark of the indicator. Technically, this confirms that downward forces are dominant and controlling price movement in this market. Therefore, traders can target the 0.8600 price level.
USD/CAD: Bullish
Despite the weak stance of the US dollar, the USD/CAD market has continued its upward correction. As a result, the major FX pair remains above all MA lines, particularly the 20-day MA curve. This upward momentum appears to be driven by a stronger bearish sentiment in the Canadian dollar.
However, the Stochastic RSI lines are merging and trending upward, just above the 40 level of the indicator. Additionally, the position of price action above all MA lines indicates that upward forces are likely to continue pushing the market higher toward the 1.4100 mark.
AUD/USD: Bearish
The AUD/USD market has continued its downward retracement. Consequently, this major FX pair is now trading below all MA curves on the chart. The latest price candle is bearish but has formed a long lower shadow, indicating potential upward pressure. However, the Stochastic RSI lines continue to fall below the 50 level of the indicator.
The lead line of the indicator significantly leads the lagging line into the oversold region of the indicator. This suggests that downward forces are likely to maintain control of price action in this market, pushing it toward the next psychological support level at the 0.6400 mark.
EUR/JPY: Bullish
While the EUR/JPY market is not directly correlated to the US dollar, it has also managed to print a continued upward retracement. This has allowed the major FX pair to record significant price recovery. Although price action remains below the MA ribbons, the market seems to be targeting 160.00 as a resistance level.
The Stochastic RSI lines are trending upward. The leading line of the indicator is testing the 50 mark, while the lagging line remains around the 30 level. This suggests significant volatility in the market, which may assist the pair in breaking through the 160.00 price level.
USD/JPY: Bearish
The USD/JPY pair has adopted a subdued outlook, largely due to the bearish sentiment surrounding the US dollar. The major FX pair is trading below three out of four MA curves. The current session is bearish but has made minimal downward progress.
USD/JPY currently trades above only the 200-day MA line. However, the Stochastic RSI lines still have a steady upward trajectory but are below the 20 mark of the indicator. Nevertheless, it seems likely that this pair will end the week on a bearish note, towards the support at the 149.00 threshold.
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