The US dollar has continued to maintain some positivity even as trade tariff tensions ease. Some major FX pairs have been trending upward, while others aren’t benefiting as much from the latest fundamentals. Let’s analyze each of them below.
EUR/USD: Bearish
The EUR/USD market has continued to advance upward despite easing tensions surrounding the US economy. Price activity for this major FX pair has been edging higher since the beginning of this week. Also, the momentum seems to be gaining ground, considering the appearance of successive bullish price candles.
The market has just moved past the middle band of the Bollinger Bands indicator. In addition, the Bollinger Bands have contracted, hinting that price forces are becoming stronger. The movement of the Moving Average Convergence Divergence (MACD) indicator lines is turning away from its previous downward trajectory. The MACD bars are also turning pale red, hinting at a weakening bearish trend in this market. As a result, the bullish outlook here appears encouraging.
GBP/USD: Bearish
The GBP/USD market has followed a similar path to the EUR/USD. However, the ongoing session appears bearish, as the corresponding price candle is red. Be that as it may, the gains from the previous session still outweigh the slight downward move in the current one.
As a result, price activity remains above the middle band of the Bollinger Bands. The Bollinger Bands indicator has started to contract. Meanwhile, the MACD bars are trending sideways around the equilibrium level and remain at a notable altitude. Despite this, the latest bar is now solid red. However, the bars are short, indicating that bearish momentum may fade and the market could approach the 1.3500 price level.
USD/CHF: Bullish
The USD/CHF market has experienced an upward rebound that has pushed the pair above the middle band of the Bollinger Bands. This rebound may have disrupted the previous trend significantly. This interpretation stems from the convergence of the Bollinger Bands and the fact that the price is trading above the midline.
Similarly, the MACD lines have been trending upward since the previous session, and the current session has resulted in the appearance of a green histogram bar on the MACD indicator. Emerging indications from this market suggest a short-term upward retracement. Therefore, traders can still target the 0.8750 price level.
USD/CAD: Bearish
The USD/CAD market has maintained a generally downward trend over the recent past, despite the US economy gaining some traction. Nonetheless, there are positive indications in this major FX pair that merit attention. The last price candle is green, and the Bollinger Bands have also been contracting.
However, price action remains below the middle band of the Bollinger Bands. The MACD indicator lines are still below the equilibrium level but show a slight upward trajectory. The latest bar is solid green, suggesting that although price activity is currently limited, the market may move higher toward the 1.4000 price level.
AUD/USD: Bullish
The AUD/USD market has shown an impressive recovery from its last price dip. The major FX pair has continued to trend upward, even after breaking above the middle band of the Bollinger Bands. However, the ongoing session has produced a minor downward pullback. Despite that, the pair remains above the midline of the Bollinger Bands.
Meanwhile, both the upper and lower bands are contracting, suggesting that more significant movement may still be ahead. Additionally, the MACD indicator lines are moving upward above the equilibrium level, and the histogram bars continue to appear above the zero line.
EUR/JPY: Bullish
The EUR/JPY pair has been staying above the 160.00 price level for some time. The pair recently approached the 164.00 threshold but retreated below that level. However, the ongoing session has provided some relief for medium-term bullish traders as the price resurfaced above the middle band of the Bollinger Bands. Meanwhile, the MACD indicator lines are oscillating above the equilibrium level, and the histogram bars reflect uncertainty about the continuation of the recent pullback. That said, the upward retracement may continue toward the 164.00 price level.
USD/JPY: Bullish
Lastly, the USD/JPY market has also been trending upward, with only a few pauses. The pair has now moved above the middle band of the Bollinger Bands. At the same time, both the upper and lower bands of the indicator are contracting, coinciding with the appearance of the latest price candle above the midline. Meanwhile, the MACD lines remain below the equilibrium level but are now showing an upward trajectory. The MACD histogram bars are pale green and above the zero mark. Therefore, traders may continue to target further gains toward the 145.00 level and possibly even higher toward 150.00.
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