The dollar has been significantly impacted by the growing tension in the Middle East. As a key participant in the conflict, the greenback has taken a notable hit. This has given some of the major FX pairs the opportunity to rebound positively, while others continue on a downward trajectory. Let’s take a look at each of the major FX pairs for this week.
EUR/USD: Bullish
Price activity in the EUR/USD market has benefited from dollar weakness. As a result, price action for this major FX pair has continued upward. The current session’s price candle appears green, suggesting a minimal but ongoing upward retracement.
Additionally, price action remains above the 9-day Exponential Moving Average (EMA) line. The Moving Average Convergence Divergence (MACD) indicator lines are also moving upward above the equilibrium level. Technically, this market appears aligned for a continued upward retracement toward the 1.1800 price level.
GBP/USD: Bullish
Bullish sentiment remains strong for this major FX pair. However, the upside movement in GBP/USD was most pronounced in the past two sessions. The current session has shown only minimal gains but continues to keep the market above the 9-day EMA curve.
Simultaneously, the MACD indicator lines are converging for a bullish crossover above the equilibrium level, indicating growing bullish momentum. Consequently, this market may still reach the 1.3650 price level.
USD/CHF: Bearish
The USD/CHF market has taken a bearish turn. This is typical of major FX pairs with the dollar as the base currency. Price action has fallen below the 9-day EMA line on the daily chart, suggesting a continued downward retracement.
The most recent price candle is green but too small to threaten the prevailing bearish sentiment. At this point, price action appears to be targeting a breach of the support level at the $0.8000 mark.
USD/CAD: Bullish
The USD/CAD market stands out among major FX pairs, showing a slight upward trajectory. The current session remains in the green, with the corresponding price candle positioned above the 9-day EMA line.
Although the upward movement is modest, its position above the EMA suggests a sustained bullish outlook. The MACD indicator lines are rising toward the equilibrium level from below, and the histogram bars are solid green, hinting at a possible continuation of the uptrend toward the 1.3850 price level.
AUD/USD: Bullish
The AUD/USD market continues its upward recovery. This major FX pair has been on an upward path for an extended period, recently rebounding off the 0.6400 support level.
However, the last price candle is red and sits just above the 9-day EMA line. The MACD indicator is turning upward toward a potential crossover above the equilibrium level, while its histogram bars are pale red in response to the recent rebound. If the 9-day EMA support holds, this pair may head toward the 0.6600 price level.
EUR/JPY: Bullish
Price action in the EUR/JPY market has breached a seven-month-old resistance level. This pair had traded below the 168 price level for over seven months but has now moved above it, currently trading above the 169 threshold.
On a technical basis, price action remains above the 9-day EMA line, and the MACD indicator lines are moving upward after crossing above the equilibrium level. Therefore, short-term traders may target the 170 price level.
USD/JPY: Bullish
The USD/JPY market has a slight upward trajectory, which is somewhat unexpected given the broader dollar weakness. The latest price candle has breached resistance at the 9-day EMA line.
However, the 147 resistance level remains strong, having caused a pullback three sessions ago. As of now, the MACD indicator lines continue to rise, albeit shakily, above the equilibrium level. Consequently, the 147 resistance level may continue to hold, making it a reasonable target for the time being.
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