With speculations surrounding the greenback, it has started gaining significant traction as the US dollar has been rising against its pairs. Most of the upcoming economic data are anticipated to roll in better than the previous. This has introduced a notable shift in this week’s price analysis of the major FX pairs. Let’s dive in below.
EUR/USD: Bearish
Since the start of trading activity this week, the EURUSD market has been edging downward. Though at modest momentum, this market has stayed bearish. Today’s trading so far has kept the market below the 9-day Exponential Moving Average (EMA) curve since it is a bearish price candle.
However, bearish momentum is quite modest at this point and, as such, suggests a counterbalancing effect to some extent. Meanwhile, the Stochastic Relative Strength Index (SRSI) indicator lines can be seen dropping into the oversold region. As such, traders can still expect the market to descend towards the 1.1550 and possibly the 1.1525 mark.
GBP/USD: Bearish
The GBPUSD market possesses a similar bearish trajectory to the EURUSD market. Here as well, price action has been descending since the start of the week.
However, it is worth noting that the bearish sentiment for this major FX pair seems to be getting stronger, going by the size of recently appearing price candles on the chart.
The SRSI indicator lines are also dropping toward the 80 mark following a downward crossover. Therefore, this major FX pair may soon hit the 1.3100 or 1.3050 price level shortly.
USD/CHF: Bullish
The USDCHF market has been gaining on the fact that upside forces have been in the lead due to improving sentiment surrounding this major FX pair. This market has been rising upward for the past three sessions.
Today’s trading activity has kept the Stochastic Relative Strength Index (SRSI) indicator lines poised upwards. Also, the corresponding price candle to the current session stands at a distance above the 9-day EMA curve. The combination of technical indications in this market suggests that it may proceed towards the 0.8100 price level.
USDCAD: Bearish
The USDCAD market has a general upward trajectory, but yesterday’s trading was quite bearish as it wiped out the upside movement of the last three sessions.
However, as of today, the market has rebounded upward, bringing the major FX pair to trade just below the 9-day EMA curve. As a result, the lines of the SRSI indicator take a sideways trajectory.
The sideways trajectory of the SRSI lines is due to the upward rebound in the ongoing session. Seeing this occur off the 20 threshold of the SRSI signals that price action may proceed toward the 1.4050 and a more distant 1.4100 price level.
AUD/USD: Bullish
For almost a month, the AUDUSD market has been able to find a support level at the 0.6472 price mark. This major FX pair has kept hitting this support level without falling below it or rising significantly above it.
The ongoing session is a bearish one and heads toward the highlighted baseline at the sideways-drawn trendline. This keeps trading below the 9-day EMA in this market.
Meanwhile, the lines of the SRSI are still descending into the oversold region of the indicator. Therefore, it seems like bears might try to breach the 0.6472 support level this time.
EUR/JPY: Bullish
The EURJPY market has eventually burst its way through the 180 price level. The market stands bullish even as of the time of writing. The last price candle on the chart is a green one and stands at a distance above the 9-day EMA curve.
Simultaneously, the SRSI indicator lines can be spotted still rising upward into the overbought region. Consequently, this aligns the market for more price increases toward the 182 price level.
USD/JPY: Bullish
With the newly found strength of the US dollar, the USDJPY market has been in an upward bearing. The ongoing session is represented by a green and moderate-sized price candle. In addition, it stands at a notable distance above the 9-day EMA.
The morphology of the price candle suggests that upside forces aren’t pushing back against price movement in the session. Meanwhile, the lines of the SRSI indicator are positioned upward as they rise into the overbought region.
Therefore, given the current bullishness of the dollar, this major FX pair may proceed toward the 160 price level.
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