The US dollar continues to weaken as European investors limit their exposure to the greenback. This has had a bearish effect on most major FX pairs, with some gaining bullish momentum while others trend downward. Let’s examine each of the major pairs below:
EUR/USD: Bullish
The EUR/USD has been gaining bullish momentum due to the ongoing weakness of the US dollar. This major FX pair has remained generally on an upward trajectory ever since its price action rebounded off the support around the 1.1000 price level.
The latest price candle on the daily chart is green and stands above the 9-day Exponential Moving Average (EMA) line. It is of considerable size, indicating that the ongoing session is recording strong gains. Similarly, the lines of the Moving Average Convergence Divergence (MACD) indicator are taking a new upward course above the equilibrium level. The MACD bars are also green and stand tall, suggesting price action still has enough momentum to push toward the 1.2000 level.
GBP/USD: Bullish
The GBP/USD market shows a similar trajectory to the EUR/USD. This major FX pair has been on an upward path since rebounding off the support near the 1.2600 price mark. The ongoing session also finds support above the 9-day EMA line.
In addition, the MACD lines remain above the equilibrium level and are converging toward a bullish crossover. The latest price candle on the daily chart appears after an upward rebound off the 1.3400 level in the previous session. It suggests this pair is gaining more bullish momentum. Consequently, traders can expect a continued upward climb toward the 1.3700 and possibly 1.3800 levels.
USD/CHF: Bearish
The USD/CHF pair has remained under pressure for weeks, as the US dollar—being the base currency—continues to weaken. The ongoing session has seen a stronger downward move, as investors further reduce their exposure to the dollar.
The current price candle is red and has pulled the major FX pair significantly below the 9-day EMA line. Meanwhile, the MACD lines remain below the equilibrium level and are tangled in a downward pattern, suggesting that bullish forces are insufficient to counter the downward momentum. Therefore, traders can anticipate a further retracement toward the 0.8000 level.
USD/CAD: Bearish
Similar to USD/CHF, the USD/CAD pair is also on a downward trajectory due to the fundamentals surrounding the US dollar. The current session stands below the 9-day EMA line, with a red candle indicating that bearish forces are in control.
The MACD indicator lines are taking a new downward path below the equilibrium level. The most recent MACD bar is solid red, reinforcing the bearish outlook. As a result, this major FX pair may continue downward, and traders can anticipate a retracement toward the 1.3500 level.
AUD/USD: Bullish
The AUD/USD pair has maintained a steady upward trajectory for weeks. Although bullish momentum slowed at one point, price action never deviated from the general uptrend.
The current session remains bullish and stands above the 9-day EMA line. The MACD indicator also follows a steady, slight upward course. Given the current sentiment in the FX market, this major FX pair may have the potential to reach the resistance at the 0.6600 level.
EUR/JPY: Bullish
The EUR/JPY market has successfully breached a multi-month resistance level during the ongoing session. Although there has been a slight slowdown in upward momentum recently, the current session still holds above the 9-day EMA line.
Likewise, the MACD lines are steadily rising above the equilibrium level, and the bars are becoming progressively taller. Collectively, these technical indicators suggest that bullish momentum remains strong, with price action possibly advancing toward the 167.00 level or slightly beyond.
USD/JPY: Bearish
The USD/JPY pair appears unable to break free from sustained downward pressure. The ongoing session presents more weakness than previous ones, with a red candle that stands clearly below the 9-day EMA line.
The MACD lines are converging for a downward crossover below the equilibrium level. Even the faint bars of the MACD histogram above the equilibrium line are fading, which reinforces the bearish bias. Consequently, this pair may continue descending toward the 142.00 level.
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