The US dollar has been on a bearish stretch for some time. However, recent economic developments suggest that the greenback may see some improvement. As a result, several major FX pairs appear to be experiencing potential trend shifts.
EUR/USD — Bullish
Despite slight improvements in the US dollar, the EUR/USD market has maintained an upward bias. The current session is represented by a green price candle trading above the 9-day Exponential Moving Average (EMA), following a minor pullback toward the EMA in the previous session.
Additionally, the Stochastic Relative Strength Index (SRSI) maintains an upward crossover in the oversold region. This suggests that this major FX pair may extend its gains toward the 1.2000 price level.
GBP/USD — Bullish
The GBP/USD pair exhibits similar behavior to EUR/USD. The ongoing session shows bullish momentum, with the corresponding price candle trading above the 9-day EMA curve. Price action generally remains on an upward trajectory.
The SRSI indicator also retains its upward bias following a bullish crossover in the oversold region. Given that price action has established support above the 9-day EMA, the upward rebound of this major FX pair may extend toward the 1.3750 level.
USD/CHF — Bearish
The USD/CHF pair has declined significantly from what appeared to be longer-term support around the 0.7846 level. Price action currently trades below the 9-day EMA, with the latest candle appearing as a small red body beneath the indicator.
Meanwhile, the SRSI lines are gradually descending toward the 50 level, suggesting weakening momentum. This aligns with expectations that price action may continue its decline toward the 0.7625 level.
USD/CAD — Bearish
The Canadian dollar has gained significantly against the US dollar, creating strong headwinds for USD/CAD. This has pushed the pair below key technical levels.
The latest price candle remains red, though its body is smaller compared to the previous two sessions. It also trades below the 9-day EMA line. The SRSI has delivered a bearish crossover, with its lines trending downward from near the 80 level. Consequently, bearish pressure may push the market lower toward the 1.3500 level.
AUD/USD — Bullish
With the US dollar showing signs of weakness, the AUD/USD pair has continued to rise. The pair registered a strong bullish move earlier in the week, trading firmly above the 9-day EMA.
The current session is marked by a green candle positioned above the EMA curve. Additionally, the SRSI has produced a bullish crossover, with its lines gradually rising from the oversold region. This suggests the pair may advance toward the 0.7200 price level.
EUR/JPY — Bearish
The EUR/JPY pair appears to have encountered strong resistance near the 185 level. The last three price candles have been red, reflecting a steady decline since Monday.
The most recent candle trades below the 9-day EMA. Meanwhile, the SRSI lines are dipping sharply toward the oversold region. The leading line is near the 26 level, while the lagging line remains above the 50 mark. This indicates moderate bearish momentum, with the pair potentially declining toward the 180 level.
USD/JPY — Bearish
The USD/JPY pair is exhibiting similar behavior to EUR/JPY, though with more pronounced momentum. The last two price candles are red, signaling strong bearish movement.
The latest candle trades below the 9-day EMA and has a notable body size, reflecting sustained selling pressure. The SRSI lines have crossed downward and are descending into the oversold region. Consequently, the pair may continue its decline toward the 150 level.
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