With the renewed dollar weakness, it can be observed that the price action of major FX pairs has been significantly impacted. However, it is necessary to examine this new price direction to gain reasonable insight into how to maximize the trend.
EUR/USD: Bullish
The EUR/USD market has been able to notably capitalize on the new trend. The price action of this major FX pair has seen a decent ascent after rebounding near the 1.1400 price level. The ongoing session is currently testing the middle band of the Bollinger Bands (BB) indicator.
The BB indicator appears to be shifting toward a sideways trajectory. Likewise, the lines of the Stochastic Relative Strength Index (SRSI) indicator still maintain a general upward trajectory. However, there is a slight deflection toward a crossover. From this point, a rise past the middle band of the BB indicator could point toward higher price levels around the 1.1800 mark.
GBP/USD: Bullish
Price activity in the GBP/USD market appears to follow a similar trajectory to the EUR/USD market. However, the momentum seems slightly weaker compared to the previously examined pair. The price candles are small but are heading toward the middle band of the BB indicator. The BB indicator itself shows a slight downward bearing, supported by modest market momentum.
Meanwhile, the SRSI indicator lines maintain a slight upward trajectory but remain below the 40 level. Consequently, a slight improvement in sentiment around the U.S. dollar could effectively limit the market below the middle band of the BB indicator. Therefore, a target at the 1.3397 price level might be sufficient in the meantime.
USD/CHF: Bearish
The USD/CHF market has witnessed a sharp pullback from its previous upward path. Consequently, this has caused the major FX pair to retreat below the uppermost limit of the BB indicator. The BB indicator maintains a slight upward bearing at the terminal.
Also, the SRSI indicator lines are already converging toward an upward crossover. This hints at a possible shift in the market, suggesting that price activity may proceed upwards toward the 0.8150 price level in the meantime.
USD/CAD: Bearish
The USD/CAD market shows a similar outlook to the previously examined USD/CHF pair. However, differences exist, as the price movement in this case appears more conspicuously bearish. The ongoing session features a stronger downward push, with the latest price candle descending more clearly toward the middle limit of the BB indicator.
The BB indicator shows a very slight upward trajectory. Likewise, the SRSI indicator line has a more direct downward bearing toward the 50 mark. This implies that price action could continue descending toward the 1.3550 level.
AUD/USD: Bullish
The AUD/USD market has also changed course from its previous downward correction. The ongoing session shows a green candle, presenting a notable upward rebound. Nevertheless, price action remains below the middle limit of the BB indicator, which itself now trends more sideways.
Furthermore, the SRSI indicator line continues to rise from the oversold region. Although the lines are still below the 40 mark, this indicates that momentum is still developing. Despite this, the market appears to have a chance of crossing above the middle limit of the BB indicator, which may signal a stronger price increase.
EUR/JPY: Bullish
The EUR/JPY market has returned to its bullish trend, following a pullback toward the 170 price level. The upward movement can now be seen extending into a second consecutive session. However, the pair still trades below the middle limit of the BB indicator.
At the same time, the SRSI has just completed an upward crossover in the oversold region, below the 20 mark. Although recent SRSI movement appears a bit erratic, traders may want to monitor relevant economic developments to gather more impetus.
USD/JPY: Bullish
Following recent U.S. dollar weakness, the USD/JPY has experienced notable pullbacks. As a result, the pair now trades below the middle limit of the BB indicator. Recent price candles are small but are hovering near the middle band.
The SRSI indicator line has sharply deflected toward an upward crossover, deep in the oversold region. A visible gap still exists between the leading and lagging lines, suggesting further upside potential. If price action crosses the middle band of the BB indicator, it may indicate a possible price increase toward the 150 level.
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