Investors appear to have turned their attention to the US dollar. This shift has notably driven the price action of most major FX pairs, causing the market to move more prominently in one direction. The strengthening of the US dollar seems to be backed by a lineup of positive US economic data, including the ISM Manufacturing PMI and ISM Services PMI reports.
EUR/USD: Bearish
The EUR/USD market has experienced a significant nosedive. This major FX pair has retraced negatively for five consecutive sessions. As a result, the last green price candle on the chart lies even below the lower band of the Bollinger Bands (BB) indicator.
Consequently, the Stochastic Relative Strength Index (SRSI) line has reached the lower limit of the BB indicator. However, the lead line of the SRSI appears to be bending toward the signal line, potentially forming a bullish crossover. That said, the market seems too depressed to support a meaningful upward crossover in the short term, so traders may target the 1.1200 price level.
GBP/USD: Bearish
The GBP/USD market has continued its steep decline, registering six consecutive bearish sessions. As a result, price action has descended below the lower band of the BB indicator without showing any significant rebound, either minimal or moderate. The BB indicator itself is beginning to tilt downward in response to the sustained bearish pressure.
Similarly, the SRSI indicator line remains suppressed, showing no signs of a potential upward crossover. Therefore, barring any significant contrary fundamentals, traders may expect further movement toward the 1.3000 price level.
USD/CHF: Bullish
The USD/CHF market is one of the major FX pairs benefiting from the recent traction gained by the US dollar. Price action has been on an upward trend for the past six sessions. The most recent candle stands above the upper band of the BB indicator but appears slightly bearish.
However, considering the modest size of this candle, it likely reflects minor rejection rather than a trend reversal. Simultaneously, the SRSI lines are in the overbought region. While the indicator can remain overbought for extended periods, the appearance of the last price candle suggests a potential pullback toward the 0.7950 level.
USD/CAD: Bullish
The USD/CAD market shares a similar trajectory with the USD/CHF pair. However, this FX pair remains in the green. The most recent candle stands above the upper band of the BB indicator. Likewise, the SRSI lines are in the overbought zone and appear to be converging.
Technically, this signals a potential pullback, but given the current market sentiment, the bullish momentum may persist, pushing prices toward the 1.4000 level.
AUD/USD: Bearish
The AUD/USD pair has been negatively impacted by the strengthening US dollar. This major FX pair experienced a sharp dip, breaking away from its previous upward path. The latest green candle on the chart appears very contracted and lies below the lower band of the BB indicator.
The SRSI indicator line has also reached the oversold zone, with the lead line showing slight lateral movement. This suggests that a rebound might be approaching. Nevertheless, the ongoing bearish trend has a stronger likelihood of extending toward the 0.6300 price level.
EUR/JPY: Bullish
The EUR/JPY market is showing signs of recovery following three straight sessions of downward retracement. The ongoing session has posted a notable rebound, bringing the price back toward the midline of the BB indicator. Meanwhile, the BB indicator itself maintains a general upward trajectory.
Additionally, the SRSI lines have just crossed over below the 10 mark. While this indicates that the rebound remains vulnerable, it also implies there is ample room for continued upward movement. Therefore, traders might aim for the 174.00 price level.
USD/JPY: Bullish
Bulls in the USD/JPY market remain in control. This major FX pair has continued its upward trend since its recent rebound off the midline of the BB indicator. The appearance of recent price candles suggests that bullish momentum is being maintained.
Currently, the latest candle is pressing against the upper band of the BB indicator and still appears strong. Likewise, the SRSI lines are pointing sharply upward, with the lead line having just crossed the 70 mark and the lagging line approaching 65. Consequently, price action seems poised to reach the 152.00 level.
Get access to lifetime VIP membership. Join us here.
Leave a Reply