The US dollar has been showing some signs of weakness lately. This was also evident in today’s trading activities. Some of the major FX pairs are experiencing a pause in their overall trend. However, for the most part, this may turn out to be just a retracement as the US dollar anticipates key data such as the PCE and GDP, which are key inflation gauges.
EUR/USD: Bullish
The EUR/USD has seen a sharp upward rebound since its price action tested the support at the 1.0400 mark. The market has contracted upward as if to refuse any further downward retracement. The market has continued upward with the ongoing session producing the most significant price increase. The Stochastic Relative Strength Index (RSI) lines can be seen rising sharply into the overbought region.
Despite the significant price increase seen in the ongoing session, the market remains below all the Moving Average (MA) lines. Consequently, this brings the major FX pair under strong headwinds. As a result, traders may want to be cautious as the market may revisit the 1.0400 mark should expected fundamental data from the US arrive favorably for the USD.
GBP/USD: Bullish
The GBP/USD market has a similar characteristic to the EUR/USD market. Price action here has just rebounded off the support level at the 1.2510 mark. The mentioned support seems strong as price action has continued upward ever since the previous session. The ongoing session has produced significant gains, going by the appearance of the last price candle on the chart. Nevertheless, price action remains below all the MA lines, and as such, dampens upside hopes.
On the other hand, the Stochastic RSI lines are rising sharply upwards from the oversold region. Likewise, the distance between the leading and lagging lines of the indicator suggests that volatility is high, yet traders should keep an eye out for economic developments even as they anticipate prices increasing toward the 1.2700 mark.
USD/CHF: Bearish
The USD/CHF market has strongly rebounded from its upside path. This happened in the past three sessions. The downward force in the ongoing session has gotten stronger, going by the appearance of the last price candle on the chart. Also, price action lies above most of the MA lines and, as such, still offers some form of resistance to strong downward retracements. The Stochastic RSI lines have fallen deeply into the oversold region.
Consequently, the movement of these indicator lines seems exaggerated and, therefore, suggests that downward forces may be exhausted soon. Meanwhile, the price action of the major FX pair will still be above most of the MA lines, leaving bullish traders enough confidence to pick a target towards the 0.8950 price mark.
USD/CAD: Bearish
The USD/CAD has been on a strong upside path since its price action rebounded off the support at 1.3441. The previous session was particularly bullish as the market surged and poked its way through the 1.4100 resistance level. This seems to have caught the attention of downward forces, which caused the market to contract downward. The ongoing session has appeared, presenting further but minor downward retracement.
Nevertheless, the Stochastic RSI indicator lines are still retaining an upward trajectory. The RSI lines are still in the oversold region and, as such, suggest that the major FX pair is still vulnerable to further downward retracements. However, since the market is still above most of the MA lines, the market may rise back towards and through the 1.4100 threshold.
AUD/USD: Bullish
The AUD/USD market remains confined within a narrow price range of 0.6545 and 0.6445. The mentioned price range lies below all the MA lines on the chart. Likewise, price action here has turned bearish since the past four sessions. The ongoing session, however, has been bullish but has only presented very little upside retracement in this market. Also, price activity remains below all the MA curves on the chart.
Meanwhile, the Stochastic RSI lines can be seen delivering a bullish crossover. The ensuing lines of the indicator have an upward bearing and, as such, suggest that more price increases may be seen in this market. Nevertheless, the fact that price action remains below all lines hints that upside sentiment may be overwhelmed, and the market may turn towards the 0.6445 support.
EUR/JPY: Bullish
The EUR/JPY pair has been facing significant downward pressure since its failed attempt to breach the 162.00 resistance level. This downward trend has persisted over multiple sessions, with the most recent session extending the bearish momentum. A closer look at the technical indicators reveals a bearish outlook. The price has dipped below all key MA, indicating a strong bearish bias. Moreover, the Stochastic Relative Strength Index (RSI) remains deeply in the oversold territory, suggesting that the selling pressure is likely to continue.
As a result, the major FX pair is poised to test the next significant support level at 158.00. Traders should remain cautious and monitor the market closely for any signs of a potential reversal. However, given the current bearish sentiment and technical indicators, it seems prudent to anticipate further downside potential in the short term.
USD/JPY: Bullish
The USD/JPY pair is falling sharply on the daily chart. The US dollar’s weakness seems magnified considerably in this major FX pair. This can be attributed to the cautious mood in the US dollar ahead of key economic data. This has given the JPY the opportunity to drive the market. The ongoing session has seen a strong downward retracement. Currently, the price lies between the 20-, 200-day and 50-, 100-day MA lines.
The 50- and 100-day MA lines have just delivered a crossover below price action and have presented a downward contraction in the ongoing session. Meanwhile, the Stochastic RSI lines are still falling into the oversold region. Therefore, this market has a considerable downward propensity. As a result, this may see the market fall towards the 150.00 price level.
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