US Dollar Tumbles: Weakest Week Since December After Mixed Jobs Report

Weekly Analysis of Major FX Pairs (May 2nd–9th, 2024)

Major FX pairs with the US dollar as the base currency have certainly benefited from the Fed’s remarks, as announced yesterday. This seems to have returned them to an upward path on a minimal scale, as reflected in their price chart. However, trading decisions must be based on a more thoughtful examination. To that effect, let’s dive in.

Weekly Analysis of Major FX Pairs (May 2nd–9th, 2024)

EURUSD: Bearish

The previous session in the EURUSD market equalized the losses that were printed in the preceding session. This seems to refocus the market on an upside path. Nevertheless, the US dollar seems to have picked up some momentum today, which is resisting further upside moves in this market.

At this point, the pair trades above the majority of the Guppy Multiple Moving Average (GMMA) curves. Also, the Relative Strength Index (RSI) indicator lines have delivered an indecisive crossover in the overbought region. As such, this market is currently trading in choppy water. Traders may want to align with the bearish anticipation of prices hitting nearby support of the 1.0700 price mark in this major FX pair market.

Weekly Analysis of Major FX Pairs (May 2nd–9th, 2024)

GBPUSD: Bearish

The GBPUSD market has resurfaced above the 1.2500 mark. The pair has seen a minimal downward correction in today’s trading activity. However, this major FX pair is still trading above the support level constituted by the 1.2500 price mark. The RSI indicator lines have a downward trajectory despite seeing only a minimal bearish correction, which seems exaggerated.

Meanwhile, the pair continues trading above most of the GMMA indicator lines and, as such, has hopes of continuing its upside correction. Nevertheless, the USD appears to be the key driving force in this market. Therefore, traders should monitor it for any signs of the market falling toward the 1.2500 mark.

Weekly Analysis of Major FX Pairs (May 2nd–9th, 2024)

USDCHF: Bullish

The USDCHF market has finally surpassed the 0.9100 mark over the past session. As a result, the market has been able to continue on the bullish path that was set since price action rebounded at the 0.8400 mark. Meanwhile, the 0.9200 mark has presented strong resistance considering the magnitude of the downward correction that occurred off that level as soon as price action hit it in the previous session.

The sentiment surrounding the USD has assisted the pair in printing some upside corrections. Consequently, the market continues above the GMMA lines. Likewise, the RSI indicator lines retain an upside trajectory. Traders can still eye a revisit of the 0.9200 price mark.

Weekly Analysis of Major FX Pairs (May 2nd–9th, 2024)

USDCAD: Bullish

The USDCAD market has been quite choppy considering the behavior of price movements in recent sessions. Meanwhile, the mood of the USD has only been able to produce minimal gains as of the time of writing in this market.

The last price candle here has only placed the pair between the green and red GMMA lines. The RSI indicator line has continued trending upward smoothly ever since. Consequently, this signals that the trend may still be on. So traders may still hope that the pair may approach the 1.3800 mark as trading continues.

Weekly Analysis of Major FX Pairs (May 2nd–9th, 2024)

AUDUSD: Bullish

The AUDUSD has maintained a strong bullish stance. As a result, it appears that the Australian dollar has strong bullish fundamentals at this point, as opposed to the US dollar. Considering the appearance of the last price candle on this chart, we may assume that the volatility is in favor of buyers. This has assisted the pair in printing considerable profits.

However, the past two sessions have produced a strong downward correction that still appears to overwhelm any printed bullish gains at the moment. Be that as it may, the market still trades above the GMMA lines and, as such, has upside hopes. Meanwhile, the RSI indicator lines have a general bearish perspective on price movement. Nevertheless, traders may still eye the 0.6600 mark for this major FX pair.

Weekly Analysis of Major FX Pairs (May 2nd–9th, 2024)

EURJPY: Bearish

The EURJPY is bleeding out massively. It appears that the Japanese yen has acquired a much more overwhelming sentiment in recent sessions. This has favored the bears, as the market spiraled downward through multiple resistance levels.

Today’s session has continued the trend, going by the appearance of the last price candle on the chart. The pair now trades between the green and red GMMA lines. Also, the RSI lines have quietly fallen towards the oversold region in acknowledgment of the prevailing trend. The pair seems quite vulnerable at this point, and traders may eye the 164.00 mark for support.

Weekly Analysis of Major FX Pairs (May 2nd–9th, 2024)

USDJPY: Bullish

In this major FX pair market, it could be seen that the stated hypothesis in the EURJPY market has stayed valid. This can be seen through the fact that the USDJPY pair has also continued towards lower levels, in a trend in which the JPY appears to be the driving force. While more significant bearish moves were seen in the previous session, today’s session has only printed minimal bearish corrections.

Today’s trading has started above the low of the previous session. As a result, the pair has retraced above one of the green GMMA lines. The RSI indicator lines still have a general downward trajectory. However, a deflection can be seen in its leading line. Consequently, it seems that traders should monitor the USD for hopes of further upside correction towards the 157.00 price level.

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