The U.S. dollar continues its recovery amid reports that the United States may impose trade tariffs. Additionally, U.S. bond yields have seen an impressive rebound, slightly surpassing 108. With an upcoming interest rate decision, these factors have significantly influenced price movements across major FX pairs.
EUR/USD: Bearish
The EUR/USD market has experienced a notable downward retracement after price action tested resistance at the 1.0500 level. This suggests that fundamental factors have played a significant role in shaping price movement. Consequently, price action has fallen below the 50-day Moving Average (MA) line. The latest price candle now appears poised to breach the 76.80 Fibonacci retracement level as support.
However, the price action of this major FX pair remains above the 20-day MA line, while the Stochastic Relative Strength Index (RSI) indicator continues to decline toward the 80 mark. Traders may anticipate a potential rebound off the 20-day MA (1.03517) once key economic developments materialize.
GBP/USD: Bearish
The GBP/USD market follows a similar trajectory to EUR/USD, but bearish momentum appears somewhat weaker. This is evident as price action remains above the 78.60 Fibonacci retracement level. Additionally, the price is currently above the 20-day MA following a rebound off the 50-day MA line.
The Stochastic RSI lines remain above the 80 mark, placing them in the overbought region. Rather than expecting a rebound off the 20-day MA curve, traders should monitor the 1.2397 price level (78.60 Fibonacci retracement) for a potential bounce as this major FX pair reacts to upcoming fundamental events.
USD/CHF: Bullish
The USD/CHF market continues to rebound from higher support levels, maintaining the uptrend that began in mid-September last year. This pair has now recorded two consecutive sessions of upside movement. Currently, price action is positioned below the 20-day MA but remains above the 50-, 100-, and 200-day MA lines.
Notably, the 100-day and 200-day MA lines appear to be converging for a crossover. Simultaneously, the Stochastic RSI has rebounded from the oversold region and is trending upward. Since the Stochastic RSI lines are not overextended, this indicates a strong upside momentum. Given this setup, traders may anticipate a potential breakout above the 0.9100 price level.
USD/CAD: Bullish
The USD/CAD market has been advancing for the past two sessions, with bullish momentum strengthening as reflected in the formation of the last three price candles. Currently, price action is positioned above all MA lines, and the pair has moved past the 1.4400 price level.
Additionally, the Stochastic RSI lines have taken an upward trajectory, reinforcing the likelihood of further gains. Technically, this suggests that the trend could extend toward the 1.4500 level. However, the extent of this major FX pair’s price movement will depend on emerging economic fundamentals influencing price action.
AUD/USD: Bearish
Recent U.S. dollar strength has led to a downward retracement in AUD/USD after it briefly tested higher levels. The major FX pair has now pulled back from the 50-day MA line, with bearish momentum pushing price action below the 20-day MA.
Technically, price action is now below all MA curves on the chart. Meanwhile, the Stochastic RSI lines are sharply declining in alignment with the overall bearish trend. The leading RSI line has now fallen below the 80 mark, signaling increased downside pressure. Given these indicators, the AUD/USD market may continue its decline toward the 0.6200 level.
EUR/JPY: Bearish
The EUR/JPY market has been gradually trending downward since reaching the 200-day MA line three sessions ago. Since then, price action has fallen through two additional MA lines, indicating growing bearish momentum.
The latest price candle suggests that the market is currently testing the final MA support, the 50-day MA curve. Simultaneously, the Stochastic RSI lines are descending into the oversold region. This setup indicates that if price action breaks below the 50-day MA, bearish momentum could intensify, potentially driving the pair toward the 160.00 support level.
USD/JPY: Bullish
The USD/JPY market is experiencing a balancing act between price forces in the ongoing session. However, technical indicators favor continued upside movement. The latest price candle appears contracted but remains above the 50-, 100-, and 200-day MA lines.
Additionally, the Stochastic RSI lines have converged just below the 20 mark. Despite the consolidation, price action remains above the 155.00 level. Given current technical signals, this major FX pair has the potential to extend its gains toward the 157.00 threshold in the near term.
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