The US dollar has started gaining attention as it appears quite active on the fundamental front. As a result, investors are beginning to eye it again against other major FX pairs. Much intrigue still lies ahead and calls for more careful analysis to spot potential trading opportunities in the market.
EUR/USD: Bearish
The EUR/USD market has been moving slowly upward after finding support above the 1.1560 price mark. The market is showing sluggish bullish progress as investors adopt a cautious stance amid the busy fundamental outlook for the greenback.
The ongoing session is represented by a red price candle sitting directly above the 9-day Exponential Moving Average (EMA) line. Also, the Stochastic Relative Strength Index (SRSI) indicator lines have reached the overbought region with minimal price movement. Should key economic data—such as the US GDP—unfold positively, the major FX pair may climb toward the 1.1750 price level.
GBP/USD: Bearish
The US dollar is beginning to pressure the pound downward. This can be observed as price action in the GBP/USD market has been falling since the previous session. The broader downward correction began around September 13, when prices peaked at the 1.3550 level.
Though gradual, the major FX pair has been descending toward lower price zones. Likewise, the SRSI indicator lines have been falling steeply into the oversold region. This indicates that bearish pressure is prevailing and may still drive prices further down toward the 1.3000 mark.
USD/CHF: Bullish
The USD/CHF market is pushing back against downward forces. The ongoing session has been particularly profitable, as reflected in the last price candle on the pair’s daily chart. The market has now climbed back above the 9-day EMA curve.
Additionally, the SRSI indicator has delivered an upward crossover just around the 20 threshold. The resulting lines are now rising toward the 50 mark of the indicator. Consequently, this suggests that subsequent sessions may find support above the 9-day EMA line and could see prices advance toward the 0.8100 level.
USD/CAD: Bearish
The Canadian dollar appears to have gained traction since mid-October. This has introduced a significant amount of downward correction into the USD/CAD market.
Bearish activity intensified in the previous session, causing the pair to spiral downward, falling below the 9-day EMA line. Meanwhile, the SRSI indicator lines can be seen merging and trending sideways around the 0.00 threshold. At this point, it seems bears may continue to pressure the market, driving price action further down toward the 1.3800 price mark.
AUD/USD: Bullish
It is somewhat surprising to see that the AUD/USD market has continued to move upward. Recent price candles suggest that bullish momentum has strengthened, leading to a sharp rise about two to three sessions ago.
The latest price candle on the chart remains green and stands above the 9-day Exponential Moving Average line. However, it is worth noting that this candle has an upper shadow, indicating that upside forces are facing resistance. Nevertheless, the market could still edge toward the 0.6700 price level, as the SRSI remains projected into the overbought region.
EUR/JPY: Bullish
The EUR/JPY market has experienced a moderate downward correction. The last two sessions have been bearish, with the previous session appearing more pronounced than the current one.
The ongoing session is represented by a small red price candle sitting just above the 9-day EMA curve. Likewise, the SRSI indicator lines are descending toward the 50 mark after a crossover above the 60 level. While this market may still head toward the 180.00 price level, traders should anticipate that if price action falls below the 9-day EMA curve, further declines could follow.
USD/JPY: Bullish
Bulls are striving to maintain the integrity of the ongoing upward correction. The market experienced a strong downward retracement in the previous session, which brought the pair to test support at the 9-day EMA curve.
The ongoing session shows signs of intense indecision, as indicated by a spinning top candle formation. However, it remains positioned above the 9-day EMA curve. The SRSI indicator lines show a slight downward trajectory. Should the market fall below the 9-day EMA curve, price action may descend further toward the 150.00 mark; otherwise, it may rebound upward toward the 155.00 threshold.
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