The U.S. Treasury has been underperforming lately, which has been linked to the weakness of the U.S. dollar. This has had a significant impact on most major FX pairs, as evidenced by recent price action. This comes ahead of key data releases on unemployment, oil, and stocks. Let’s take a closer look at each of the major FX pairs below.
EUR/USD: Bullish
The EUR/USD market has benefited from the current weakness of the greenback. As can be seen, price action in this market has rebounded upward over the past four sessions. This major FX pair has maintained an upward path for three consecutive sessions. As a result, price action has risen past the middle of the Bollinger Bands.
Additionally, the Smoothed Rate of Change Indicator (SROC) lines have remained above the equilibrium level. The line now appears to be turning sideways around the 0.00 mark. This suggests that the market is experiencing a shift in trend and may continue heading upward toward the 1.1500 price level.
GBP/USD: Bullish
The GBP/USD market has also been progressing toward higher price levels. Price action has remained above the middle line of the Bollinger Bands for the past two sessions. The ongoing session remains bullish and is now testing the upper limit of the Bollinger Bands.
Moreover, the SROC indicator lines are still above the equilibrium level and remain green. However, the ends of the SROC lines appear to be turning sideways. Consequently, this market may continue progressing toward the 1.3450 price level, based on signals from technical indicators.
USD/CHF: Bearish
The USD/CHF market has been sliding toward lower price levels. While this FX pair was previously above the middle limit of the Bollinger Bands, it has since dropped below it. The SROC line had earlier risen above the equilibrium level but is now turning sideways under pressure.
The Bollinger Bands have also contracted, indicating reduced market volatility. The most recent price candle has appeared below the middle limit of the Bollinger Bands, suggesting the market may continue lower. Traders may anticipate a retracement toward the 0.8000 support level.
USD/CAD: Bearish
This major FX pair has continued its downward trend, influenced by the current weakness of the U.S. dollar. The ongoing session in the USD/CAD market is bearish and has just breached support at the middle line of the Bollinger Bands.
Meanwhile, the SROC indicator lines are below the equilibrium level and appear red. The market’s trajectory is now beginning to move sideways, indicating some indecision. Nevertheless, considering the position of the SROC indicator, the market may proceed downward, possibly targeting the 1.3700 level.
AUD/USD: Bullish
The AUD/USD market generally maintains an upward trend. However, this major FX pair appears to be consolidating above a key technical level. The Bollinger Bands Indicator has narrowed but retains an upward direction.
The ongoing session remains bullish, suggesting that upward momentum is still dominant. The SROC indicator lines also remain above the equilibrium level but are now turning sideways due to the consolidation in price activity. Nonetheless, the technical outlook indicates that the market may resume its upward movement toward the 0.6600 price level.
EUR/JPY: Bearish
The EUR/JPY market performed well in the previous week. However, things took a downturn after price action hit the upper limit of the Bollinger Bands. Since then, the market has retraced sharply downward, falling below the middle line of the Bollinger Bands.
The recently breached middle line now appears to be acting as a strong resistance level. The current session is represented by a red candle, suggesting a continued downward retracement. The SROC line is moving sideways just above the equilibrium level. This indicates that the pair could slide further toward the 160.00 price level.
USD/JPY: Bearish
The USD/JPY market has also been declining. Price action in this market resembles that of EUR/JPY, though the USD/JPY appears more volatile. The most recent price candle shows a significant drop below the middle of the Bollinger Bands.
The SROC indicator line has just crossed below the equilibrium level and is now turning sideways, weighed down by the bearish movement. Considering this alongside the recent drop below the Bollinger Bands’ middle line, further price declines toward the 140.00 mark may be likely.
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