The Greenback has been heavily impacted by trade tariffs and other economic developments in the United States. Consequently, this has resulted in a trend shift across all major FX pairs. Let’s dive into the action below.
EUR/USD: Bullish
The EUR/USD pair has capitalized on the current weakness of the US dollar. As a result, the pair has retraced to higher levels over the past two sessions. Price action has quickly surpassed some key technical landmarks.
The most recent price candle places the pair above the 50-day Moving Average (MA) line, while the Stochastic Relative Strength Index (RSI) has delivered a bullish crossover around the 40 level. Although the RSI lines have not extended much despite considerable price movement, this suggests that the ongoing trend may push the pair toward the 1.0500 level soon.
GBP/USD: Bearish
The GBP/USD pair exhibits similar attributes to those observed in the EUR/USD. Price action has risen above both the 20- and 50-day MA lines, a behavior common to major FX pairs quoting the USD. The Stochastic RSI indicator lines are turning upward while already in the overbought region.
Despite this overbought condition, the market appears poised for further upward retracement. The latest price candle has placed the pair above the 50-day MA line, and the RSI still shows a sharp upward trajectory. Therefore, it appears that price forces may propel the pair toward the 1.2600 mark.
USD/CHF: Bullish
In this major FX pair, the Swiss franc has quickly gained momentum against the US dollar. Consequently, the USD/CHF pair has lost traction along its medium-term upward trajectory, and price action has been moderately retracing since the start of the week.
This significant downward retracement has pushed the market off its previous upward path. The latest price candle on the chart is now testing the 50-day MA line as support, and the Stochastic RSI lines are falling sharply after a downward crossover below the 50 level. Given the momentum, this pair may head lower and soon fall below the 50-day MA line, targeting the 0.8900 price level.
USD/CAD: Bullish
The USD/CAD pair saw a massive sell-off by bears on Monday, which pushed the pair below key technical landmarks such as the 20- and 50-day MA lines. Although the price decline on Monday was significant, momentum appears to be declining.
The latest price candle has placed the pair below the 50-day MA line. The Stochastic RSI has delivered a downward crossover, and its lines are falling steeply into the oversold region. Furthermore, the lead line is far ahead of the lagging line, suggesting healthy volatility that may soon bring the pair to perch around the 1.4000 price level.
AUD/USD: Bullish
The AUD/USD is one of the pairs that has benefited from the weakness of the US dollar. This major FX pair had been in a prolonged downward trend for months. However, the pair appears to be making a considerable comeback in just a few days. Price action rebounded quickly off the support at the 0.6100 price level on Monday and then proceeded upward into the current session.
As a result, price action is about to breach the 50-day MA, which is now acting as resistance. The appearance of the recent price candle suggests that the session is not under undue pressure. Meanwhile, the Stochastic RSI is rising following a crossover in the oversold region. Therefore, while last week’s trend was bearish, the market appears to be retracing further upward toward the 0.6400 mark.
EUR/JPY: Bearish
The EUR/JPY market has shown mixed activity this week. Although the week started on a positive note, today’s trading activity has turned sour, wiping out the gains from the past two sessions. Consequently, the pair has fallen back below all the MA lines on the chart.
Additionally, the Stochastic RSI is continuing its downward trajectory after a failed attempt at an upside crossover. Technically, this signals that the downward retracement may extend further, and traders can anticipate that this pair may soon break the 158.00 support level.
USD/JPY: Bearish
Bearish momentum has considerably strengthened today in the USD/JPY market. This momentum has pushed price action past some important technical landmarks, and the pair now trades below all the key MA lines on the chart. The most recent price candle is red, indicating that downward forces are in control during this session.
While the Stochastic RSI has only delivered a downward crossover below the 20 mark, and despite significant price movement in the current session, the RSI has not surged much. This suggests that the downward pressure is strong and hints that this FX pair may hit the 150.00 price level.
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