The US dollar is gaining bullish traction against major FX pairs due to speculations surrounding upcoming jobless claims and potential interest rate cuts later this year. This has led to changes in price dynamics, warranting a careful examination.
EUR/USD: Bearish
The EUR/USD market started a downward retracement in the previous session, and the ongoing session has continued the trend due to the recent strengthening of the greenback. The current session appears to have a stronger bearish momentum, considering the size of the corresponding price candle.
The 20-day and 200-day MA lines, as well as the 50-day and 100-day MA lines, are now converging for an upward crossover. Additionally, the Stochastic RSI lines are still falling toward the 60 mark of the indicator. However, price action may find support and rebound off the 1.0800 level.
GBP/USD: Bearish
The GBP/USD market has hit resistance at the 1.3000 price level, testing it over the past three sessions. However, the market has failed to breach this resistance, leading to a downward rebound in the ongoing session.
The current session presents a moderate downward retracement, as seen in the corresponding price candle. Despite this, the pair remains above all MA lines. Meanwhile, the Stochastic RSI has delivered a bearish crossover in the overbought region, suggesting a potential short-term decline. However, an eventual upward rebound through the 1.3000 level remains possible.
USD/CHF: Bullish
While the US dollar continues posting gains, the USD/CHF market has capitalized on this momentum to print moderate gains. This major FX pair has just surpassed the 200-day MA line, with the last price candle appearing green, signaling a recovery from the minimal losses of the past two sessions.
However, price action remains below most of the MA lines, indicating strong bearish influences. The Stochastic RSI lines have just delivered an upside crossover deep in the oversold region, suggesting that upside forces have significant room for growth. Traders may target the 0.8870 price level while exercising necessary precautions.
USD/CAD: Bullish
The USD/CAD market has been in the green for two consecutive sessions, with upside forces gaining strength. The last price candle has broken through the merged 20-day and 50-day MA lines, positioning this FX pair above all MA lines on the chart.
Additionally, the Stochastic RSI indicator has delivered an upward crossover in the oversold region, with the ensuing lines moving upward. This technical setup suggests that price action may continue rising toward the 1.4500 price level.
AUD/USD: Bearish
The AUD/USD pair has also been negatively impacted by the strengthening of the US dollar. The pair experienced a stronger downward retracement than in previous sessions, with the last price candle resting on the 50-day MA line as support.
Meanwhile, the Stochastic RSI indicator has delivered a downward crossover above the 80 mark, suggesting that downward forces may grow stronger. The lead line of the indicator has already fallen below the 80 mark, indicating growing bearish momentum. Traders may target the 0.6250 price level for short-term gains.
EUR/JPY: Bearish
The EUR/JPY pair has experienced moderate downward retracement for a second consecutive session after testing resistance at the 164.00 threshold.
Despite this downward movement, price action remains above the converging 20-day and 50-day MA lines. However, the Stochastic RSI has just delivered a bearish crossover above the 80 mark, with the lines moving toward the oversold region. As a result, traders may anticipate an upward rebound near the 160.00 price level, where the 20-day and 50-day MA curves are converging.
USD/JPY: Bearish
The USD/JPY market has maintained its downward trajectory, even as other major FX pairs with the US dollar as their base currency experience positive retracements.
The 50-day and 200-day MA lines are converging above price action, signaling an impending strengthening of downward forces. The last price candle remains green, aligning with the short-term bearish trend. Additionally, price action has fallen below all MA lines, reinforcing the bearish outlook.
Meanwhile, the Stochastic RSI has delivered a bearish crossover, suggesting further price declines. Traders may anticipate a further drop toward the 147.00 support level.
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