The US dollar isn’t performing well at the moment, primarily due to the aftermath of the recent US trade tariff. As a result, the US core inflation MoM is expected to rise from 0.2% to 0.3%. This development has notably impacted a good number of major FX pairs. While the effect is relative, let’s take a closer look at each of the major FX pairs below.
EUR/USD: Bullish
The EUR/USD is currently on an upward trajectory on the daily chart. The upside retracement began on Monday when price action tested the support at the 20-day Moving Average (MA) curve. Today’s trading session appears to have been the most profitable, with fewer speculations surrounding the euro.
The last price candle on the chart stands tall and green, breaching the technical resistance at the 1.1000 price level. Likewise, the Stochastic Rate of Change (ROC) indicator is positioned above the equilibrium level, and its line appears to be turning sideways, indicating an ongoing upward retracement. Traders may consider aiming for the 1.1100 price level.
GBP/USD: Bullish
The GBP/USD market rebounded yesterday, and the trend has extended into today. However, price movement seems to be under pressure, as indicated by the last price candle on the chart, which contracted below the 200-day MA line.
Consequently, price action is now positioned between the MA lines, with the 50-day and 100-day MAs below recent price candles. The Stochastic ROC indicator remains above the equilibrium level but is gradually approaching it. Traders may continue to target the 1.2850 price level.
USD/CHF: Bearish
The USD/CHF market can be seen breaking through a multi-month support at the 0.8416 price level. This downward retracement continues the movement that began last week when price action dipped sharply on Thursday after failing to breach the resistance formed by the MA lines on the chart.
The most recent price candle has just breached support at 0.8416. Additionally, the Stochastic ROC lines are falling further below the 0.00 threshold. Consequently, this major FX pair may continue heading lower toward the 0.8300 price level.
USD/CAD: Bearish
On the USD/CAD daily chart, downward forces have been dominant. The latest price candle confirms that this major FX pair has dropped significantly today. Meanwhile, the 20-day and 100-day MA lines appear to be approaching a crossover.
Also, the Stochastic ROC lines continue their downward trajectory after falling below the equilibrium level. At this point, it is unlikely that price action will break through the resistance posed by the MA lines. Therefore, this pair may continue to move toward the 1.4000 price level.
AUD/USD: Bearish
The AUD/USD market has seen a slight bounce in today’s trading activity. However, the market dropped sharply in the previous session. Today’s trading session has brought price action back above the 0.6000 threshold.
Nevertheless, the market remains under significant bearish pressure, as suggested by the current green price candle. Meanwhile, the Stochastic ROC lines have dropped below the 0.00 threshold and continue to trend downward despite the upward rebound. Consequently, traders can aim for lower price levels given the persistent bearish pressure in this market.
EUR/JPY: Bearish
The EUR/JPY market has maintained its wide fluctuations. This major FX pair has been moving within a broad range between the 164.00 and 156.00 price levels since August 2024, limiting traders to short-term gains. The pair started the week on a bullish note, but downward momentum has gained control since yesterday.
This shift is reflected in the appearance of red-price candles over the last two sessions. Price action has now fallen below the MA lines on the chart. At this point, the pair trades below all MA lines. The Stochastic ROC lines are heading south but remain above the 0.00 level, suggesting that gains from Monday’s session haven’t been completely erased. Nonetheless, traders can target the 157.50 price level.
USD/JPY: Bearish
The USD/JPY market is also under bearish pressure. This major FX pair has been declining since the previous session and continues to do so moderately. Consequently, price action has dropped below all the MA lines on the chart. Similarly, the Stochastic ROC line is moving sideways below the equilibrium level.
Judging by the momentum indicated by the last two price candles, bearish forces appear to be maintaining dominance. The position of price activity below all the MA lines also supports the likelihood of further bearish movement, suggesting a potential retracement toward the 142.00 price mark.
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