The US dollar has shown moderate improvement in its performance across the FX market. This upward movement emerged following a wave of modest bullish speculation. Consequently, major FX pairs have been noticeably affected. Let’s take a more detailed look at each major pair below:
EUR/USD: Bearish
The EUR/USD has undergone a sustained downward correction, which began last week after the pair tested resistance at the 1.1700 level. Since then, price action has steadily declined and now trades below the middle band of the Bollinger Bands (BB) indicator.
The BB itself retains a slight upward slope, likely due to reduced market activity. Meanwhile, the Smoothed Rate of Change (SROC) indicator line remains above the equilibrium level but continues sliding downward toward it. The current positioning below the BB midpoint suggests a possible bearish continuation toward the 1.1500 level.
GBP/USD: Bearish
The GBP/USD pair has also fallen significantly, following a similar trajectory to EUR/USD but showing more pronounced bearish momentum. Since the previous session, the pair has been testing the lower band of the BB indicator.
Although a minor upward retracement has occurred, the price remains below the BB midpoint. The SROC indicator line is now touching the equilibrium level from above. Overall, the market appears subdued, and traders may consider targeting the 1.3330 support level.
USD/CHF: Bullish
The USD/CHF market continues its upward trajectory, supported by the strength of the US dollar. Price action has extended its modest bullish correction, with the current session forming just above the BB midpoint.
Although the SROC line had dropped below the equilibrium level, it is now rising steadily from that position. With continued speculation around the US dollar, this market may move toward the 0.8154 and 0.8200 levels.
USD/CAD: Bullish
USD/CAD follows a similar pattern to USD/CHF. This major FX pair has recently crossed above the BB midpoint, although overall market participation appears low. Despite this, the pair continues to drift upward.
The SROC indicator line has moved above the equilibrium level, and its terminal segment has turned green as it rises further. Given current US dollar sentiment, traders might consider targeting the 1.3800 resistance level.
AUD/USD: Bearish
Despite having shown a general upward trajectory, the AUD/USD pair has now retraced notably. The market has corrected sharply toward a drawn trendline on the chart.
The latest price candle is a small green one, but it sits below the BB midpoint. At the same time, the SROC line continues to oscillate sideways just above the equilibrium level. Nonetheless, the position below the BB midpoint leaves this pair vulnerable to further decline, possibly toward the 0.6450 level.
EUR/JPY: Bullish
EUR/JPY maintains a bullish outlook, continuing to hug the upper band of the BB indicator. At the time of writing, price action remains above the 172.00 mark. The BB indicator continues trending strongly upward.
Although the most recent candle is red, the SROC indicator line still points slightly upward above equilibrium. As such, the pair appears poised to continue its advance toward the 173.00 level. Traders may look toward the 173.50 mark for a potential upside target.
USD/JPY: Bullish
USD/JPY continues to edge upward. The last price candle appears above the upper BB limit, though it is red, signaling a modest pullback. The BB indicator remains tilted upward, aligned with prevailing market sentiment.
The SROC line has risen above equilibrium and is trending higher. Additionally, the BB bands are expanding, reflecting the ongoing bullish pressure. As a result, the market may move toward the 150.00 level.
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