With the release of U.S. employment data, the U.S. dollar has weakened. This development has notably impacted major FX pairs such as the Swiss franc, yen, and euro. Additionally, expectations of an upcoming Federal Reserve interest rate cut continue to influence market sentiment across the major pairs.
EUR/USD: Bullish
Following a sharp dip in the previous session, the EUR/USD market has rebounded. This recovery has allowed the pair to reclaim a lost technical level above the middle band of the Bollinger Bands (BB). The BB indicator has also narrowed, and with price now trading above the middle band, this suggests the potential for a strong upward move.
Meanwhile, the Stochastic Relative Strength Index (SRSI) recently delivered what appeared to be a downward crossover. However, the lines have since shifted sideways, reflecting the rebound supported by weaker U.S. jobs data. Consequently, traders may target short-term gains toward the 1.1750 level.
GBP/USD: Bullish
Similar to the EUR/USD pair, the GBP/USD market has rebounded from the lower band of the BB indicator. The BB has also contracted, albeit more smoothly. Despite this, the pair remains below the middle band of the BB.
At the same time, the SRSI lines maintain a bearish trajectory following a recent downward crossover, which is consistent with the pair’s position below the middle band. Nonetheless, traders may anticipate a continued upward retracement toward the 1.3600 level.
USD/CHF: Bearish
The USD/CHF market staged a moderate rebound in the previous session. However, price action remains capped below the middle band of the BB indicator, which now serves as a strong resistance level.
Although the SRSI lines are rising from oversold territory, the upward push appears to be weakening, with the lead line showing signs of deflection. Considering the latest U.S. data, the ongoing bearish rebound may extend further toward the 0.8000 level.
USD/CAD: Bullish
While the U.S. dollar is losing ground against most major pairs, it has shown relative strength against the Canadian dollar. Even so, the ongoing session is encountering resistance, keeping price action below the middle band of the BB indicator.
The SRSI lines continue to climb smoothly from the oversold region, suggesting that bullish momentum is still in play. However, given the current slowing pace, upside potential is limited, though gains could extend toward 1.3850.
AUD/USD: Bullish
The AUD/USD pair has posted notable gains after the prior session’s decline, rebounding strongly from below the middle band of the BB. The ongoing session now trades above the middle band, with the BB indicator tilting slightly upward, signaling a short-term bullish trend.
Although the SRSI lines, currently in the overbought region, have delivered a downward crossover, the strength of the ongoing gains suggests that the indicator may not decline quickly. As such, the pair may advance toward 0.6600, barring any major contrary economic developments.
EUR/JPY: Bullish
Bulls have maintained strong momentum in the EUR/JPY market, driving the pair above the 172.00 level and further through 173.00. It is now trading above the upper band of the BB indicator.
However, the SRSI lines appear overstretched in the overbought region, while recent price candles are relatively small. This divergence suggests that while the upside may extend toward 174.00, traders should prepare for a potential pullback toward 172.50 or 173.00.
USD/JPY: Bearish
Although the USD/JPY market has been bullish in recent sessions, current signals suggest a potential reversal. Price candles have been bullish for the past three sessions, but the ongoing session has formed an inverted hammer near the upper band of the BB indicator—an early sign of weakening momentum.
Meanwhile, the SRSI lines continue rising rapidly toward the overbought region, signaling potential exhaustion. While the broader daily chart still points to continuation, traders should anticipate at least a short-term pullback toward 147.56.
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