The US dollar continues to face significant pressure from negative economic fundamentals. This has created both headwinds and tailwinds across the major FX pairs. Below is a detailed analysis of each of these pairs. Let’s dive in.
EUR/USD: Bullish
The EUR/USD pair has managed to stay in positive territory. However, the market generally appears to be consolidating after price action tested the resistance at the 1.1500 level. While the market rebounded downward from that level, it hasn’t experienced a significant decline, with price action remaining relatively strong.
The latest price candle has delivered moderate gains, keeping the market above all Moving Average (MA) lines. Meanwhile, the 50-day and 200-day MA lines are converging below price action, signaling a potential bullish crossover. Additionally, the Stochastic Rate of Change (SROC) indicator shows an upward trajectory above the equilibrium level. Technically, the market may attempt another push toward the 1.1500 resistance for a possible breakout.
GBP/USD: Bullish
The GBP/USD pair has been retracing higher levels for the past week. Price action remains bullish and shows potential for further upward movement. The latest candle is a green one, positioned above all MA lines on the chart.
Similar to the EUR/USD, the 50-day and 200-day MAs are converging for a bullish crossover well below current price levels. The SROC indicator is also above the equilibrium level and trending upward. Based on these signals, price activity may continue climbing toward the 1.3500 level.
USD/CHF: Bearish
The USD/CHF pair has been on a bearish trajectory since last week. A sharp price decline was observed during that period. This week, price action has remained subdued and is trending sideways.
The latest candle shows a modest decline, with price action staying below all MA lines. The SROC indicator has dropped sharply below the 0.00 equilibrium level. As a result, price action for this major FX pair may fall further, possibly reaching the 0.8000 support level.
USD/CAD: Bearish
The USD/CAD pair experienced a notable price drop over the past week. While Monday and Tuesday brought some upward recovery for the major FX pair, the current session has recorded a moderate decline, pulling the market back below the 1.4000 level.
Price action remains below all MA lines, and the SROC indicator retains a downward trajectory below the equilibrium level. This confirms 1.4000 as a resistance level, while the continued bearish pressure may drive prices lower toward the 1.3700 support.
AUD/USD: Bullish
The AUD/USD pair has capitalized significantly on US dollar weakness, producing a moderate price recovery. As a result, this major FX pair is moving above most MA lines.
Although the SROC indicator is still below the equilibrium level, it maintains an upward trajectory and remains green. The convergence of the 50-day and 100-day MAs also suggests that bullish momentum may be building. However, recent price candles indicate a potential slowdown in momentum, with the latest candle turning red despite price action remaining above most MA lines. The price may still aim at the 0.6500 level.
EUR/JPY: Bearish
The EUR/JPY pair continues its long-standing range-bound behavior. Price action remains volatile within a wide channel. The latest price candle is green, following a dip below the 20-day and 200-day MAs. However, the price currently sits above the 50-day and 100-day MAs.
The SROC line remains above the equilibrium level but is trending downward, which could indicate a weakening bullish momentum. As such, traders should watch for potential declines toward 161.00 and possibly 160.00.
USD/JPY: Bearish
The USD/JPY pair remains under strong bearish pressure due to ongoing US dollar weakness. Bears have continued to dominate the market. Price action is currently below all MA lines, and the latest red candle confirms sustained bearish activity.
Meanwhile, the SROC indicator is falling steadily below the equilibrium level, reinforcing bearish sentiment. Although downward momentum appears to be slowing slightly, price action suggests a continued move toward the 140.00 level.
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