The greenback seems to be holding its own against most of the major FX pairs. This is happening amid a trade war between the U.S. and Asia. However, the renewed bullish momentum surrounding the dollar appears to be supported by a recent deal between the U.S. and the EU. This has played out across the major FX pairs and will be examined below.
EUR/USD: Bearish
The EUR/USD has experienced a downward retracement following several weeks of upward correction. Currently, the strengthening of the U.S. dollar appears to be driving this decline. Nonetheless, the applied Bollinger Bands (BB) still reflect a general upward trajectory. Additionally, price action remains above the middle band of the BB indicator, even though the most recent price candle is bearish.
Similarly, the Smoothed Rate of Change (SROC) indicator line remains above the equilibrium level, indicating that the pair is still within bullish territory. Consequently, traders may anticipate a potential bounce toward the 1.1850 price level.
GBP/USD: Bearish
The GBP/USD market remains somewhat correlated with EUR/USD. However, in this case, the pair has slid below the middle band of the BB indicator. Although the ongoing session is currently bullish (green candle), the overall trend remains uncertain.
The SROC indicator stays above the equilibrium level, despite a slight downward slope. The current session’s performance aligns with the SROC indicator’s position and suggests a possible short-term upward reversal toward the 1.3700 resistance. However, the broader trend may remain bearish unless supported by favorable fundamentals.
USD/CHF: Bullish
The USD/CHF market saw a slight upward retracement in the previous session. However, this move still appears to be weak, as reflected by the current position of price action and low volatility.
Price action remains below the middle band of the BB indicator, and the SROC indicator line also trends sideways below the equilibrium level. Therefore, the middle band of the Bollinger Bands, around 0.8037, may serve as a potential resistance level.
USD/CAD: Bullish
Like USD/CHF, the USD/CAD pair has experienced an upward retracement. However, bullish forces seem slightly stronger here. The latest price candle stands just above the middle band of the BB indicator and is bullish in nature.
In addition, the SROC indicator lines are trending slightly upward, though still below the equilibrium level. Despite this, major FX pair appears to have a reasonable chance of advancing toward the 1.3800 resistance level.
AUD/USD: Bearish
Breaking away from a previously steady upward trend, the AUD/USD pair has slid toward the middle band of the BB indicator. The ongoing session is bearish, although the price movement appears compressed. As a result, this FX pair is now trading right at the middle band.
The SROC indicator line remains above the equilibrium level, technically suggesting potential for upward movement. However, given the current bullish sentiment surrounding the dollar, such a reversal may not occur. Instead, the market could fall further toward the 0.6500 level.
EUR/JPY: Bullish
The EUR/JPY pair has continued its upward correction over the past few days and remains above the 171.00 price level. As a result, the BB indicator continues to point upward, with price candles hugging the upper band.
Likewise, the SROC indicator line maintains an upward trajectory and is positioned above the equilibrium level. This suggests that, despite the slight downward retracement in the current session, the overall bullish trend may persist. Traders can look forward to a potential move toward the 173.00 price level.
USD/JPY: Bullish
The USD/JPY market has benefited from the recent strength of the U.S. dollar. As a result, the pair has pushed up to the upper band of the BB indicator, with the indicator itself expanding in response to the increased volatility.
Similarly, the SROC indicator is trending upward above the equilibrium level, indicating that bullish momentum remains strong. This suggests a likely continuation of the uptrend, with potential for further retracement toward the 148.00 resistance, barring any adverse economic developments..
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