The U.S. dollar remains steady but softer following recent interest rate uncertainty. In addition, the ISM Services PMI is expected to ease slightly from its previous reading of 54.4 to 53.5. This backdrop has kept most major FX pairs—where the dollar serves as the quote currency—in positive territory. Let’s take a deeper look below.
EUR/USD — Bullish
Price movement in the EUR/USD daily market shows a rebound after bouncing off the 9-day Exponential Moving Average (EMA) as a support level. The last two price candles on the chart are green, though with relatively small bodies.
As a result, price action is gradually approaching the 9-day EMA curve, now acting as resistance. Meanwhile, the Stochastic Relative Strength Index (SRSI) lines are slowly shifting toward an upside crossover from the oversold region. A sustained break above the 9-day EMA may signal a potential move toward the 1.1850 price level.
GBP/USD — Bullish
The GBP/USD market has managed to hold its base above a critical support level. The last two sessions on the daily chart show price stabilizing and lifting off the 9-day EMA line.
The current session, in particular, has clearly pushed above the EMA curve. Similarly, the SRSI indicator lines are converging toward an upside crossover near the 50 level. As such, the market stands a strong chance of extending its advance toward the 1.4000 price level.
USD/CHF — Bearish
Price action in the USD/CHF market has come under sustained headwind pressure, forcing it below the 9-day EMA curve. The most recent price candle on the daily chart reflects notable selling pressure during the ongoing session.
However, price action continues to hover close to the 9-day EMA. Meanwhile, the SRSI indicator lines are pushing upward into the overbought region. As such, this market may attempt a short-term rebound toward the 0.8000 price level, despite the broader bearish bias.
USD/CAD — Bullish
The USD/CAD market has recently dipped below the 9-day EMA curve on the daily chart. However, the latest price candle remains green at the time of writing, although it reflects strong compressive pressure from headwinds.
The SRSI indicator lines maintain an upward bias but show signs of a potential bearish crossover following the previous session’s pullback. Consequently, the market appears fragile, and traders should tread carefully, as price action may slide toward the 1.3600 price level.
AUD/USD — Bullish
The AUD/USD market continues to trend higher. Price action rebounded off the 9-day EMA, which acted as a support level, and the previous session delivered a notable upside move.
The ongoing session shows a modest continuation of this broader trend. Meanwhile, the SRSI indicator lines are converging toward an upside crossover just above the 50 level. As a result, price action has reclaimed the 0.7000 level and may extend toward the 0.7100 price level.
EUR/JPY — Bullish
The EUR/JPY market continues to push higher, with price action reclaiming and holding above the 185.00 level. Recent price candles show increasing bullish momentum, with the current candle appearing larger than previous bullish sessions.
This suggests strengthening upside momentum as the Japanese yen softens amid economic sentiment developments. Additionally, the SRSI indicator lines are rising smoothly from the oversold region, indicating that price action may advance toward the 186.50 price level.
USD/JPY — Bullish
The USD/JPY market is trending higher despite broader U.S. dollar softness. The Japanese yen remains comparatively weaker at the time of writing.
Price action has broken above the 9-day EMA curve and is now trading comfortably above it. Meanwhile, the SRSI indicator lines are rising steadily, with the lead line pushing above the 60 level. As such, the market may continue its upward move toward the 160.00 price level.
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