With the U.S. economy expected to remain largely stable on the inflation front, it appears this has provided some upside thrust to the greenback. Most notably, this development has had a significant influence across several major FX pair markets. Let’s examine each of the markets below in more detail.
EUR/USD: Bearish
The improving sentiment surrounding the U.S. dollar has had a noticeable impact on the EUR/USD market. This major FX pair has been oscillating sideways since its price action fell below the upward-sloping trendline on the chart. The last two price candles are positioned below the 9-day Exponential Moving Average (EMA) line.
At the same time, the Stochastic Relative Strength Index (SRSI) indicator lines can still be seen dipping toward the oversold region. However, upon closer examination, the market has experienced only minimal price movements. Considering the U.S. dollar’s current outlook on a fundamental basis, combined with the position of the latest price candle, this market may continue to move toward the 1.1550 price level.
GBP/USD: Bearish
Similar to the previously analyzed market, the GBP/USD pair appears to be following a similar trajectory as the EUR/USD. Here as well, price action has retreated below the 9-day EMA line, while the ongoing session remains in the red, suggesting a persistently bearish market.
Likewise, the SRSI lines can be seen falling into regions below the 80 threshold, indicating sustained bearish momentum. Consequently, this suggests that bears still have a promising outlook in this market. Even when summing up the technical indications, it seems market participants are eyeing the 1.3300 price level.
USD/CHF: Bullish
The ongoing session in the USD/CHF daily market has remained on the bullish path established three sessions ago. However, in the current session, price forces appear to be at loggerheads, resulting in some difficulty for bullish forces to push further upward.
Meanwhile, the SRSI indicator lines can be seen taking an upward turn from the oversold region. Additionally, the last price candle has placed this major FX pair above the 9-day EMA curve, albeit by a narrow margin. Given that the applied technical indicators on the chart are aligned, it seems this market is preparing to rise further, possibly resurfacing above the 0.8000 price mark.
USD/CAD: Bearish
While one might have expected the USD/CAD market to be on an upward trajectory, it appears that the Canadian dollar is mounting strong resistance. The ongoing session remains notably bearish, with the last price candle dipping the major FX pair back below the 9-day EMA line.
It can also be observed that the SRSI indicator lines have fallen deep into the oversold region, reflecting a moderate price decline over the past three sessions. Therefore, this suggests that downward forces may not remain in control for long. As a result, bearish traders may target the 1.3900 price level in the near term.
AUD/USD: Bearish
The AUD/USD market has continued its consolidation phase. This assumed consolidation movement has persisted for the past seven days, keeping the major FX pair confined below the 9-day EMA line.
The latest price candle on the chart shows a small-bodied green candle that still remains below the 9-day EMA curve. The SRSI indicator lines are progressing slightly upward toward the 50 mark and appear to be almost merged as they move closer together. Therefore, this market needs a stronger catalyst to push price action toward the 0.6500 price level.
EUR/JPY: Bullish
Downward forces in the EUR/JPY market have not been able to breach the support at the 175.00 price level. This is evident as the previous session delivered a notable recovery, pushing the major FX pair back above the 9-day EMA curve.
The last price candle on the chart appears as a red doji, which, despite its color, has managed to stay above the 9-day EMA line. Similarly, the SRSI indicator lines are moving sideways just below the 50 level. Consequently, bullish forces are still expected to remain dominant in this market despite what appears to be a brief phase of indecision. Therefore, traders may continue to target the 177.00 price level.
USD/JPY: Bullish
The USD/JPY market has been recovering steadily since rebounding off the psychological support level at 147.00. For the past three sessions, bullish momentum has remained dominant. The previous session was strongly bullish, while the ongoing session has remained relatively stagnant but still positive.
Technically, the latest price candle suggests that investors are currently waiting on the sidelines for a key catalyst that could further strengthen the U.S. dollar’s outlook. The SRSI indicator lines continue to maintain an upward trajectory and are now about to cross above the 50 threshold of the indicator. Traders of this major FX pair can aim for the 153.50 price level in the near term.
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