The cautious mood surrounding the greenback has had a noticeable effect on most major FX pairs. This stems from market anticipation of the US CPI data release. Earlier, this allowed major FX pairs with USD as their base to recover some ground during today’s trading activity. However, further movements are likely as the US CPI came in softer than expected.
EUR/USD: Bullish
The EUR/USD is one of the major FX pairs that rebounded in anticipation of the US CPI data. Price action has continued upward for the third consecutive session on the daily chart. However, today’s trading session has shown some contraction due to speculations surrounding the US CPI outcome.
The price candle for the ongoing session is testing the 20-day Moving Average (MA) line. Similarly, the Stochastic Relative Strength Index (RSI) maintains an upward trajectory despite the observed contraction. However, price action remains below all the MA lines, which puts a strain on bullish momentum. Nevertheless, the softer-than-expected CPI may support further gains in upcoming sessions.
GBP/USD: Bullish
The GBP/USD market has rebounded strongly today. This major FX pair has climbed both during the cautious mood and following the release of the US CPI data. The market appears to have support at the 1.2200 mark. However, price action remains below all the MA lines on the chart and at a significant distance from them.
Nonetheless, the Stochastic RSI lines are in the oversold region but show an upward trajectory. Both the RSI lines and the last price candle on the chart suggest that bullish momentum is building. As a result, the pair may recover further toward the 1.2400 level, as the US dollar currently appears weaker.
USD/CHF: Bearish
The USD/CHF pair has been retracing after testing resistance at the 0.9200 level. The most recent price candle on the chart is red but shows an upward contraction, indicating that buyers are pushing back in the ongoing session. Price action remains above all the MA lines, signaling underlying support.
Meanwhile, the Stochastic RSI lines have fallen sharply into the oversold region, reflecting the bearish pressure in the session. However, traders can monitor the 20-day MA line as potential support. If breached, the market may extend downward toward the 0.9000 level.
USD/CAD: Bearish
The USD/CAD market has been trending downward for the third consecutive session. This suggests that the decline is driven not only by USD weakness but also by economic developments on the Canadian side.
The most recent price candle has dropped below the 20-day MA line. Similarly, the RSI lines are moving downward into the oversold region, following a crossover. The position of the last price candle below the 20-day MA line indicates a short-term bearish outlook. Consequently, traders may target the 1.4350 and 1.4300 price levels in the near term.
AUD/USD: Bullish
The AUD/USD pair has shown a notable recovery as the greenback lost momentum. The pair’s current price has climbed above the 20-day MA line. However, today’s trading session has seen some contraction, leaving the price precariously balanced above the 20-day MA line.
The RSI indicator remains upwardly oriented, with the lead line breaching the 80 level. As it stands, price action could continue upward toward the 0.6300 mark.
EUR/JPY: Bearish
The EUR/JPY market has been unable to break above the 200-day MA line. This pair has not benefited from recent USD weakness, as the stronger Yen has weighed on the Euro.
This has led to a notable decline, with the market rebounding off the 20-day MA line in the previous session. The RSI lines delivered a crossover but are now moving sideways below the 20 threshold. This suggests the market could extend its decline toward the 160.00 level.
USD/JPY: Bullish
After a period of consolidation around the 158.00 level, the USD/JPY market experienced a sharp drop, bringing it below the 20-day MA line. The corresponding price candle shows a lower shadow, indicating buyers are pushing back. Price action remains above the other MA lines on the chart.
Additionally, the RSI lines are converging in the oversold region, signaling a potential bullish crossover. This could lead to renewed bullish momentum, with the pair likely rebounding toward the 158.00 mark, as the 156.00 level provides strong support.
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