The US dollar has continued to post losses; however, it has just recorded one of its biggest gains in over three weeks. This seems to be the aftermath of weaker-than-anticipated US consumer inflation data. Consequently, this has had an impact on most major FX pairs. Let’s dive into the details below.
EUR/USD: Bearish
The weaker greenback has allowed the EUR/USD pair to post moderate gains. Price action has continued to edge higher for the second consecutive session. However, the ongoing session has experienced some downward contraction, with price action now lying below the middle line of the Bollinger Bands.
The Moving Average Convergence Divergence (MACD) lines are turning sideways above the equilibrium level. Additionally, the MACD histogram bars are pale red, suggesting weaker downward momentum. As a result, the price action of this major FX pair may continue to rise toward the 1.1350 level.
GBP/USD: Bearish
Similar to the EUR/USD, the GBP/USD pair has been trending higher for the second consecutive session. The ongoing session has pushed through the middle line of the Bollinger Bands, and the latest price candle has moved the pair above this middle band.
Although the candle is relatively small, it does not appear to be under significant bearish pressure. The MACD lines are above the equilibrium level and appear to be converging. An eventual crossover would support further upside movement for this major FX pair. Consequently, this market seems to be heading toward the 1.3450 level.
USD/CHF: Bullish
The USD/CHF market has been affected by the US dollar’s weakness, resulting in a downward retracement after hitting the upper Bollinger Band. This downward movement has persisted for the second consecutive session. Nevertheless, price action of this major FX pair remains above the middle line of the Bollinger Bands.
The MACD lines remain below the equilibrium level but are angled upward. However, the indicator’s terminals are reflecting the recent bearish activity. Barring any unexpected fundamental shifts, the market may see further downward retracement toward the 1.3800 level.
USD/CAD: Bearish
The USD/CAD pair has continued to exhibit moderate downward retracement for the second straight session. Observing the recent price candles, this pullback appears controlled. Technically, this could be viewed as a rebound off the upper Bollinger Band. However, the Bollinger Bands have contracted considerably, suggesting that the market might soon find technical support.
The MACD indicator lines are trending upward toward the equilibrium level. As the retracement progresses, traders may anticipate a rebound from the middle Bollinger Band, potentially targeting the 0.8500 level—particularly if supported by new economic data.
AUD/USD: Bullish
The AUD/USD market is progressing upward, benefiting from a weaker US dollar. The current session remains positive for this major FX pair, with price action breaking above the middle Bollinger Band. Interestingly, this breakout occurs amid a significant contraction in the Bollinger Bands.
Meanwhile, the MACD lines are positioned well above the equilibrium level and are converging, signaling a potential bullish crossover. Technically, this suggests that the market is likely to continue its upward movement toward the 0.6550 level.
EUR/JPY: Bullish
The EUR/JPY pair has made notable gains in recent sessions. However, since price action hit the upper Bollinger Band, the market has been in a slight retreat. The ongoing session has posted considerable losses, and the short-term trend appears to be heading toward the middle Bollinger Band.
Meanwhile, the MACD lines remain above the equilibrium level, though the indicator’s terminals are flattening out due to the current downward pressure. As things stand, traders can anticipate further movement toward the 166.00 level for this major FX pair.
USD/JPY: Bullish
The USD/JPY pair has experienced a stronger downward retracement in the current session, despite signs of a rebound beginning in the previous session. Nevertheless, price action remains above the middle Bollinger Band and appears to be moving toward it, which could act as a support level.
The MACD lines continue to progress toward the equilibrium level, and an upward rebound from the middle Bollinger Band is still possible. Despite the recent pullback, MACD histogram bars remain above the equilibrium level, supporting a potential move toward the 148.00 price level.
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