The U.S. dollar has been underperforming since the trade tariff plan was made public, significantly impacting major FX pairs. This week, the greenback has continued its weak performance, edging lower at the close of the week. This decline can be attributed to market anticipations surrounding the next trade tariff announcement, which will likely set the tone for the upcoming week.
EUR/USD: Bearish
The EUR/USD market has experienced a slight downward retracement spanning six consecutive sessions. However, the previous session saw a moderate rebound, keeping the market afloat above all the Moving Average (MA) curves. Today’s trading session continues this upward movement.
Meanwhile, the Stochastic Relative Strength Index (RSI) has just started an upward trajectory from the oversold region. This is consistent with the fact that price action remains above all MA lines. As a result, bullish forces appear more active at the moment, with the potential to drive the market toward the 1.1000 price mark.
GBP/USD: Bearish
The GBP/USD market has been consolidating since the beginning of the week. The previous session posted moderate gains, helping keep the market above all MA curves. However, today’s session has seen a slight pullback, as indicated by the latest price candle on the chart.
Meanwhile, the Stochastic RSI maintains a slight upward trajectory from the oversold region, reinforcing the notion that price action remains above all MA lines. Despite the initial setback, this market retains upside potential. Traders may target the 1.3100 price level.
USD/CHF: Bearish
The USD/CHF pair remains under pressure, largely due to the weak performance of the U.S. dollar. As a result, this major FX pair has been consolidating. Since the start of the week, price action has moved sideways just above the 200-day MA curve while remaining below the 20-day MA line.
Additionally, the 50-day and 100-day MA lines are converging above the price action, while the Stochastic RSI lines are falling toward the 80 mark. This suggests that downward forces are dominant. Combined with ongoing speculation about the U.S. dollar, this pair may face further selling pressure, testing support at the 0.8800 price level.
USD/CAD: Bullish
Despite overall weakness in the U.S. dollar, it has managed to gain against the Canadian dollar. These gains were stronger in the previous session, and while today’s session continues in the same trajectory, key technical levels are restricting further upside movement. The last price candle has tested resistance at the 50-day MA line.
Even though the session remains positive, the market is still trading below key resistance levels. The Stochastic RSI is maintaining its upward trajectory following a crossover in the oversold region, suggesting that prices may continue to rise toward the 1.4400 price level.
AUD/USD: Bearish
From a broader perspective, the AUD/USD market appears to be moving higher. However, in the short term, it remains bearish. Price action has been progressively finding higher support levels since February 1. The latest session is held at a higher support level but remains below all MA lines.
The Stochastic RSI lines are converging and moving sideways in the oversold region. This suggests that the market may decline further. However, if the pair resumes its upward momentum, gains may be limited to short-term movements toward the 0.6350 price level.
EUR/JPY: Bearish
The EUR/JPY market has been performing relatively well despite an immediate downward retracement. The bearish sentiment in this market stems from the fact that the latest price candle remains above most MA lines, with the last candle hugging the highest MA levels on the chart.
Additionally, the Stochastic RSI lines have recently merged for an upward crossover while still within the oversold region. The indicator’s terminal lines are moving sideways, suggesting that price movements are in a bottleneck. Traders may still target the 164.00 and 166.00 price levels.
USD/JPY: Bearish
While the USD/JPY market has been trending higher recently, the Japanese yen has held its ground against the U.S. dollar. As a result, this major FX pair has only been making slight upward movements. The closing session for the week has seen a steep downward retracement, pushing the market below key technical levels, including the 50-day, 100-day, and 200-day MA lines.
Simultaneously, the Stochastic RSI has reached the overbought region despite only modest price increases over an extended period. Currently, the indicator is slightly declining toward the 80 mark. Traders should monitor the upcoming trade tariff announcement, as it could influence market direction. Until then, price action may test support at 149.00 or 148.50.
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