The dollar appears to have gained some strength, likely as a result of the U.S. president backing down from his earlier threat to fire Chair Powell and the easing of trade tensions. Consequently, this has caused a notable trend shift in most major FX pairs. Let’s take a closer look at each of the major FX pairs below.
EUR/USD: Bearish
The recent strength of the greenback has solidified the technical resistance level at 1.1500 in the EUR/USD market. As a result, this major FX pair has rebounded downward from the resistance at that level. This movement began in the previous session and has extended into the current one.
Nevertheless, price action remains above all the Moving Average (MA) lines. Similarly, the Stochastic Rate of Change (SROC) indicator continues to rise above the equilibrium level. Therefore, it seems the uptrend is still intact, and traders may still anticipate a subsequent breakout beyond the tested resistance at 1.1500.
GBP/USD: Bearish
The recent surge in the strength of the greenback has reinforced the technical resistance around the 1.3500 mark in the GBP/USD market. This has led to a noticeable pullback from that level, which began in the previous trading session and has continued into the current one.
Despite this, the pair still holds above all the key MA indicators, suggesting that the bullish structure remains intact. Likewise, the SROC indicator continues to climb steadily above its equilibrium point, showing no signs of momentum loss. This implies that the prevailing uptrend is still valid, and market participants may be positioning for an eventual breakout beyond the tested 1.3500 resistance level.
USD/CHF: Bullish
The USD/CHF market has rebounded upward just above the 0.8000 price level. This pair has sustained its upward retracement for a second consecutive session. Although the rebound appears moderate, price action remains below all the MA lines.
Consequently, the SROC indicator has fallen below the 0.00 mark, with the line trending more sideways due to the recent rebound. Nevertheless, this market still appears vulnerable and may resume a downward move toward the 0.8000 price level.
USD/CAD: Bearish
The USD/CAD market has seen a pause in bearish momentum. Previously, this pair had retraced to lower price levels at a much stronger pace. Meanwhile, the momentum gained by the greenback has had only a minimal impact on price movement. At this point, price action is proceeding sideways below all the MA lines.
Although the last price candle is green, it appears compressed beneath all the MAs. Also, the SROC indicator line continues to trend slightly downward after falling below the equilibrium level. Consequently, this market still appears vulnerable and may proceed downward toward the 1.3700 price level.
AUD/USD: Bullish
The AUD/USD market has seen a considerable upward move. However, price action currently appears somewhat sideways. Despite this, the ongoing session remains bullish.
At the moment, price action is positioned above most of the MA lines, which are interlacing below the price. Additionally, the SROC line continues to trend upward after crossing above the equilibrium level. Technically, this pair may still progress toward the 0.6500 price level.
EUR/JPY: Bullish
The EUR/JPY market has recorded a considerable upward retracement. Recently, the pair has managed to hold just above the 161.00 price level. The latest price candle has pushed the pair above all the MA lines.
Meanwhile, the SROC indicator is above the 0.00 mark but is currently hovering near the equilibrium level. The indicator line is green as it tests this level. Consequently, it appears that price action may continue to approach the 164.00 price level.
USD/JPY: Bullish
The USD/JPY market has rebounded upward after price action tested the support level at 141.00. This rebound has persisted for two consecutive sessions. However, the most recent price candle is situated below all the MA lines, indicating some pressure.
Also, the SROC indicator continues to decline below the 0.00 mark and is currently at -3.90. The latest candle has a long upper shadow, which suggests that the downward retracement may continue toward the 140.50 price level.
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