The US dollar has taken on a firmer outlook since the economy anticipates a myriad of economic data. Investors are picking up hints on this, and as a result, this may cause a flip in the market. Therefore, this week’s analysis of major FX pairs holds some intrigue.
EUR/USD: Bearish
The US dollar seems to be generating a sizeable amount of downward pull in the EUR/USD market. As a result, this major FX pair can be seen sitting just above the 9-day Exponential Moving Average. Also, the last price candle on the chart is a red one and as such indicates a notable downward pull in the session.
Likewise, the Stochastic Relative Strength Index (SRSI) lines have delivered a crossover just below the 80 level of the indicator. Technically, this hints at the fact that this market may descend below the 9-day EMA curve toward the 1.1650 price level. Albeit this will hold if the US dollar keeps its edge.
GBP/USD: Bullish
The GBP/USD market has been able to hold its own against the greenback even at the moment. Therefore, this signals that the market may see more positive movement should the dollar weaken. The ongoing session is represented by a contracting green price candle.
However, with the price candle settling just above the 9-day EMA, it seems upside forces may be lurking. The lines of the Stochastic Relative Strength Index (SRSI) are just above the 80 threshold of the indicator but seem to be tending sideways at the moment. Nevertheless, technically, it appears upside forces are still at an advantage and may push further upwards toward the 1.3600 price level.
USD/CHF: Bullish
As expected, the USD/CHF is riding on the wings of the firmer outlook surrounding the US dollar at the moment. As a result, the last two price candles on this chart are bullish in appearance. Also, the SRSI indicator has just delivered an upward crossover below the 20 threshold level of the indicator.
Albeit since price action remains below the 9-day EMA curve and the SRSI lines are in the oversold region, it appears that downside forces may still prevail. Therefore, traders should watch if price action rises past the 9-day EMA, as this will signal the possibility of the market reaching the 0.8100 price level.
USD/CAD: Bullish
The USD/CAD continues to rise steadily and slowly upward above the 9-day EMA curve. The ongoing session stays bullish and rises further upwards above the 9-day EMA line. This suggests that buyers are growing more confident in this market.
Albeit the small size of the price candle signals that traders may be more cautious at the moment. Nevertheless, the SRSI lines have a much stronger upward bias, rising even as the major FX pair keeps trading above a key level. Consequently, this suggests that traders can retain a bullish stance toward the 1.400 price level.
AUD/USD: Bullish
The AUD/USD market, as well, keeps a clear support level above the 9-day EMA curve. The corresponding price candle to the ongoing session has appeared green and floats higher above the 9-day EMA line. Simultaneously, the SRSI indicator lines are in the overbought region, and the lines of the indicator are nearly at the 100 level.
Therefore, considering the overbought condition, traders can anticipate a pullback in the market. Albeit, seeing that the ongoing session stands clearly above the 9-day EMA line may give some protection to bullish traders in the market toward the 0.6700 price mark.
EUR/JPY: Bearish
After gaining support above the 172.00 price level, the EUR/JPY market hasn’t been able to gather the needed momentum to push further upwards. The past two sessions have been more dramatic as price action descended more sharply.
This major FX pair had previously been tipped to find support above 173.00 soon, but going by the look of things, that may not be visible. The last price candle on this chart appears green but compresses to a spinning-top price candle. Consequently, this signals that downward forces may be ready to push the market further downwards toward or through the 170.00 price level.
USD/JPY: Bearish
The USD/JPY market appears trapped below the 9-day EMA curve since the previous session. The ongoing session, as well can be seen standing just below the 9-day EMA curve. However, it is a green price candle and as such presents some sort of positive price movement.
At the same time, the SRSI indicator lines are converging toward a bullish crossover below the 30 mark of the indicator. Technically, this hints that price action may be preparing to breach the apparent resistance at the 9-day EMA curve. An eventual crossover here may signal a stronger upward movement toward the 150.00 price level.
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