This week’s analysis of major FX pairs reveals a degree of divergence from the usual dominance of the US dollar. Unlike previous periods where the dollar largely dictated market direction, several major FX pairs now appear to be charting their courses. Let’s take a closer look.
EUR/USD: Bullish
The EUR/USD pair has maintained its upward trajectory. However, the US dollar has caused a slight pullback in the ongoing session, bringing the pair to trade just above the middle band of the Bollinger Bands (BB). Nonetheless, price activity remains supported above this level, maintaining the overall bullish structure.
The Smoothed Rate of Change (SROC) indicator displays a sideways trajectory above the equilibrium line, suggesting sustained momentum. Traders should monitor eurozone developments for catalysts that could drive a continued retracement toward the 1.2000 level.
GBP/USD: Bullish
GBP/USD continues its rebound off the lower band of the BB indicator. The current session remains in positive territory, testing the middle band from below. However, the bullish momentum of this major FX pair seen over the past three sessions appears to be fading, with the ongoing session forming a relatively small green candle.
The SROC indicator has dipped slightly below the equilibrium line, hinting at waning strength. Despite this, the BB indicator maintains a sideways trajectory, suggesting bears have yet to gain control. Keeping an eye on UK fundamentals, the 1.3700 price level remains a viable upside target.
USD/CHF: Bearish
USD/CHF remains depressed, with relatively low volatility. The BB indicator maintains a downward slope, reflecting ongoing weakness. While the most recent price candle is green, it remains below the middle BB band, affirming the bearish outlook.
The SROC line also lies below the equilibrium level, though it curves slightly upward at the tip, possibly indicating a pause rather than a reversal. As such, this pair remains vulnerable, with a move toward the 0.7900 level still in play.
USD/CAD: Bearish
Contrary to its bullish label, the USD/CAD chart shows price action trading below the middle BB band. The latest candle is small and compressed, indicating weakening momentum as it tests the lower BB limit.
Additionally, the SROC indicator has dropped below the equilibrium level again, aligning with the bearish direction. The BB bands also tilt slightly downward, reinforcing a bearish outlook with potential for price movement toward the 1.3550 level.
AUD/USD: Bullish
The AUD/USD pair stands out with a notably bullish structure. The current session remains firmly in the green, with the price candle positioned above the middle BB band. This follows three consecutive bullish sessions.
The BB bands are slightly upward sloping, and the SROC indicator remains above the equilibrium level with a mild upward slope. These signals suggest further bullish momentum toward the 0.6650 level.
EUR/JPY: Bullish
EUR/JPY has reached significant highs but remains just below the 172.00 level. Despite the ongoing session forming a red candle, price action holds above the middle BB band, preserving the bullish outlook.
The BB bands maintain an upward trajectory. Meanwhile, the SROC indicator curves downward from above the equilibrium line, reflecting the recent consolidation and minor retracement. Still, traders can look toward a potential advance to the 172.50 mark.
USD/JPY: Bullish
USD/JPY has experienced a pullback, but the price remains above the middle BB band, supported by the ongoing session’s activity. The current candle reflects some pressure, yet critical technical levels continue to hold.
The BB bands show a slight upward slope, and the SROC indicator stays above equilibrium, suggesting the pair may rebound if supported by favorable US economic news. Until then, traders of this major FX pair can target the 148.00 price level.
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