The US dollar is currently experiencing a notable comeback against its counterparts. This has been particularly noticeable across the majority of the major FX pairs. The rebound seems fueled by the array of economic data expected to arrive on the USD side of the market. In addition, the US appears to be attracting more investors, while French politics have triggered a selloff.
EUR/USD: Bearish
The EURUSD has been on the receiving end of the strengthening sentiment surrounding the US dollar. Price action has fallen below the middle band of the Bollinger Bands (BB) indicator in the ongoing session.
At the same time, the extreme limits of the BB indicator are now converging, which tends to strengthen bearish sentiment. The Stochastic Relative Strength Index (SRSI) indicator lines are racing toward the oversold region. In fact, the latter part of the indicator lines has just delivered a bearish crossover. Based on the available technical indications, price action may attempt to breach support at the 1.1500 price level.
GBP/USD: Bearish
The GBPUSD market mimics the EURUSD in that it also remains under pressure. However, this major FX pair stands slightly higher. The ongoing session can be seen perching just above the middle limit of the BB. The BB itself shows a slight upward trajectory.
The middle limit still holds as a baseline in this market. Meanwhile, the SRSI lines are proceeding into the oversold region. Similar to the EURUSD market, the SRSI lines show renewed momentum toward oversold conditions. Technically, the GBPUSD market may descend toward the 1.3400 price level.
USD/CHF: Bearish
As earlier established, the USD is witnessing some recovery, and as a result, this has assisted the USDCHF pair in posting modest gains. The BB indicator can be seen to have significantly narrowed, portraying reduced volatility.
In fact, this major FX pair is trading below the middle limit of the Bollinger Bands. Meanwhile, the ongoing session is a green one, pushing price action toward the middle limit of the BB indicator. Should favorable outcomes emerge on the fundamental side, the market is positioned to rise above the middle limit of the BB indicator, moving toward the 0.8200 level.
USD/CAD: Bearish
The USDCAD has been able to hold onto its gathered gains over a length of time. The ongoing session has delivered some modest gains, given its green appearance.
Price action can be seen standing just above the middle limit of the BB indicator, which preserves the upward trajectory. Furthermore, the SRSI indicator lines are tending toward an upward crossover. Therefore, price action may proceed toward the 1.3950 price level.
AUD/USD: Bearish
The AUDUSD market seems burdened by the strengthening sentiment surrounding the US dollar. The ongoing session has pulled price action below the middle limit of the BB indicator.
The market had earlier consolidated around the middle limit of the BB indicator, but the ongoing session appears to have broken that trend. The SRSI indicator lines are converging toward a bearish crossover. As it stands, this major FX pair may slide lower toward the 0.6350 price level.
EUR/JPY: Bullish
The EURJPY market appears to be maintaining a sideways trajectory. For about two weeks, price candles have been consolidating around the middle limit of the Bollinger Bands. However, as trading continues, price action has aligned with the middle band of the BB indicator.
This is evident in the most recent price candle on the chart. Meanwhile, the BB indicator itself remains sideways, but the SRSI lines keep falling into the oversold region. Consequently, traders may see this major FX pair racing upward toward the 172.00 price level.
USD/JPY: Bullish
Similarly, the USDJPY market has also assumed a general sideways trajectory. However, the ongoing session has broken through a key resistance level, which may pave the way for a much stronger upward retracement.
The last price candle has brought the major FX pair to trade above the middle limit of the BB indicator. Although the movement of the BB indicator lines appears somewhat uneven, it has produced a sharp upward crossover. Coupled with the fact that the market is now above the middle band of the BB indicator, this suggests that price action may approach the 150.00 threshold.
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