The US dollar seems to have gathered notable traction. This has occurred amid growing tensions in the Middle East. These developments have had a notable impact on major FX pairs, as some of them have struggled to maintain their ongoing trends. Let’s dive in below.
EUR/USD: Bearish
The EUR/USD market’s upside retracement seems to have stalled about five sessions ago when price action first tested resistance at the 1.1600 price level. The latest price candle has appeared below the 9-day Exponential Moving Average (EMA) and is red in color.
The Moving Average Convergence Divergence (MACD) lines have risen above the indicator’s equilibrium level. However, the lines appear to be converging and moving sideways. Given that price action now lies below the 9-day EMA line, the market may decline toward the 1.1300 level, barring any market-moving news.
GBP/USD: Bearish
The GBP/USD market has come a long way from the support level at 1.2010 and now trades above the 1.3400 mark. The corresponding price candle is green but stands below the 9-day EMA line. It also appears rather compressed, indicating diminishing momentum in this market.
Meanwhile, the MACD line remains above the equilibrium level, but its terminal end is diverging and descending toward the equilibrium. Likewise, the MACD histogram bars are solid red and below the equilibrium level. This suggests that price action could move further downward toward the 1.3300 level for this major FX pair.
USD/CHF: Bullish
The USD/CHF market has been printing consistent gains over the past five sessions. The upside rebound followed a test of support at the 0.8000 level. Currently, the last price candle stands above the 9-day EMA line. Although the candle shows some contraction, its position above the EMA line remains a bullish signal.
Additionally, the MACD line is still below the equilibrium level but has formed a bullish crossover. While the upside momentum has been building, the MACD bars have only just started appearing green above the equilibrium. Nevertheless, traders may remain optimistic about a move toward the 0.8250 price level.
USD/CAD: Bullish
Bullish momentum remains strong in the USD/CAD daily market. This major FX pair began its upward retracement two sessions ago. Although the bullish momentum was stronger in the earlier sessions than in the current one, price action remains clearly bullish and continues to hold above the 9-day EMA line.
Likewise, the MACD line is below the equilibrium level but has formed a bullish crossover. The MACD lines are rising toward the equilibrium, and green bars are now appearing above it. These signs align with the current bullish session and suggest that price action may advance toward the 1.3800 price level.
AUD/USD: Bearish
The AUD/USD market has struggled to break through resistance at the 0.6538 level. This is evident as price action has repeatedly tested this resistance without success. In the ongoing session, a significant pullback has occurred, causing the pair to trade below the 9-day EMA line.
Moreover, the MACD lines are above the equilibrium level, but the terminal ends are diverging slightly and heading downward. Similarly, the MACD histogram bars have turned red and dropped below the equilibrium. Combined with price action falling below the 9-day EMA, this suggests that the market could decline toward the 0.6400 level.
EUR/JPY: Bearish
The EUR/JPY market seems to be making efforts to remain bullish. In the ongoing session, price action is slightly above the 9-day EMA, and the corresponding candle is green. This gives the impression that the market may attempt to continue upward.
However, the MACD lines are moving upward above the equilibrium level, while the histogram bars are pale green—indicating weakening bullish momentum. This likely reflects the downward retracement observed over the past two sessions. Consequently, traders may consider setting targets at the 168.00 price level.
USD/JPY: Bullish
The USD/JPY market has also benefited significantly from the positive sentiment surrounding the US dollar. The most recent price candle stands just above the 9-day EMA line, and the ongoing session’s candle appears bullish—pushing the pair toward the 146.00 price level.
The MACD lines have just emerged above the equilibrium level, and the histogram bars are also positioned above it. This suggests that bullish momentum is strong and the market may continue upward toward the 148.00 price level, especially if supportive fundamentals continue to emerge.
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