The US dollar has experienced turbulence recently. As a result, some major FX pairs are gaining significantly, while others are dipping sharply and may see further declines in subsequent sessions.
EUR/USD — Bullish
Although the EUR/USD market has been on an upward path since the start of the week, the previous session faced a strong rejection. This pushed the market lower, but price action remains above the 9-day Exponential Moving Average (EMA) line. The ongoing session is following a similar path, showing only very modest bearish progress.
In this context, the lines of the Stochastic Relative Strength Index (SRSI) have crossed above the 80 mark. However, the market is now descending from the overbought region. As such, this market may rebound and move through the 1.2000 price level.
GBP/USD — Bullish
Over the past sessions, the GBP/USD market has maintained an upward trajectory, as revealed by the upward-sloping trendline. During the previous session, the market experienced a decline. However, trading remains well above the 9-day EMA curve.
The SRSI indicator lines have performed a downward crossover above the 90 mark and are now moving sideways. Nevertheless, considering the support provided by the 9-day EMA curve, this major FX pair may resume its upward movement toward the 1.3700 price level.
USD/CHF — Bearish
The USD/CHF market has seen a strong price decline in recent sessions. This caused the pair to dip sharply below critical technical levels. Although the last two price candles show some upside recovery, price action remains far below the 9-day EMA curve.
The SRSI indicator lines have produced an upside crossover, which aligns with short-term market activity. However, since price remains notably below the 9-day EMA curve, the broader downward correction may continue.
USD/CAD — Bearish
Headwinds remain dominant in the USD/CAD market, largely due to the Canadian dollar gaining strength. This has created a strong downward pull, causing price action to trend lower.
The most recent price candle appears green but is heavily compressed below the 9-day EMA curve, with long upper and lower shadows. This suggests indecision, but the market still appears inclined to move lower toward the 1.3500 price level.
AUD/USD — Bullish
Bulls in the AUD/USD market remain firmly in control, as price action has pushed significantly higher. The most recent price candle, however, is red and reflects short-term downward pressure. Nevertheless, price action remains well above the 9-day EMA curve.
The SRSI indicator lines have risen to the 100 mark and are lingering at that level, indicating potential exhaustion. Even so, technical indicators suggest that bullish forces still have support, as price remains above key levels. As such, the market may pull back before extending toward the 0.7100 and 0.7200 levels.
EUR/JPY — Bearish
The EUR/JPY market has maintained elevated levels since breaking above the 180 price mark. However, the 185 level has presented strong resistance for this major FX pair. Over the week, price action has retreated below the 9-day EMA curve.
The latest price candle is red, reflecting increasing bearish sentiment. The SRSI indicator lines are in the oversold region, with their terminal ends converging for a potential upside crossover. At this point, upside momentum may build, but traders may prefer to adopt a bullish stance only after price rises above the 9-day EMA curve toward the 185 level.
USD/JPY — Bearish
The USD/JPY market currently mirrors the EUR/JPY setup. The last two price candles are green, although the most recent one has a smaller body size. Despite this, price action remains well below the 9-day EMA curve.
The SRSI indicator lines have crossed and are moving sideways, suggesting a short-term upward rebound. As such, this major FX pair may still attempt a move toward the 150 price level.
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