While the US dollar continues to garner a weak outlook, most of the major FX pairs have been gaining bullish traction, particularly those with the US dollar as the quote currency. The PPI (MoM) is set to improve from its previous 0.0 to 0.2, while Retail Sales is expected to see only a slight improvement as well. Alone, these factors have not been able to generate much pull on the major FX pairs.
EUR/USD: Bullish
The EUR/USD market has managed to retain its base above a key technical baseline. As a result, the previous session saw a notable move off the middle limit of the applied Bollinger Bands (BB) indicator. The ongoing session remains on the same path, with the BB indicator itself showing a generally sideways trajectory.
The Stochastic Relative Strength Index (SRSI) indicator lines have aborted their previous downward crossover to resume rising into the overbought region. From a technical standpoint, this suggests the market may record more gains toward the 1.2000 price level, given the indications from the trading indicators.
GBP/USD: Bullish
Bulls in the GBP/USD market keep marching higher. Here, bullish momentum looks strong as price action continues rising above the 1.3000 price level. The ongoing session remains bullish, as shown by the corresponding price candle. The upper band of the BB indicator is diverging upward to accommodate more price increases.
At the same time, the SRSI indicator lines have risen high into the overbought region. Although the lines have moved closer together, a crossover is not yet glaring. Therefore, price action may proceed higher toward the 1.3750 price level.
USD/CHF: Bearish
The USD/CHF market has stayed depressed, given the recent sentiment toward the USD. This major FX pair has been consolidating below the 0.8100 price level for over a week. At the time of writing, price action is now testing the support represented by the middle BB band.
Meanwhile, the SRSI indicator lines have just performed a bearish crossover below the 70 mark of the indicator. This suggests that price action in this market is headed for lower levels. Therefore, in the meantime, traders can aim at the 0.8000 support level for short-term gains.
USD/CAD: Bearish
The USD/CAD market has also retained a weak outlook. Similar to the previously examined FX pair, the USD/CAD appears depressed, with price action moving more sideways and hugging the middle BB limit. The BB indicator maintains a slight upward tilt, as price action has not been able to breach the baseline formed by the middle BB band.
Meanwhile, the SRSI indicator lines have produced a downward crossover around the 50 mark of the indicator. The emerging indicator lines are following a downward trajectory. Consequently, this reinforces the view that price action may soon breach the middle BB limit and fall toward the 1.3500 price level.
AUD/USD: Bullish
The AUD/USD is one of the major FX pairs that has capitalized on the US dollar’s recent poor performance. The pair rebounded off the middle BB limit in the previous session, and the ongoing session has continued the same trend. As a result, price action has moved away from the support around the middle BB limit.
At the same time, the SRSI indicator lines have been rising into the overbought region. This upward movement suggests that the trend has moderate strength and may drive further price increases toward the 0.6620 mark.
EUR/JPY: Bullish
Although the ongoing session in the EUR/JPY market is bearish, the pair still trades above the 172 price threshold. Price action also stands above the middle BB limit, while the BB indicator follows a sideways course due to the slow but steady price increase.
The SRSI indicator lines are also maintaining an upward focus as they rise from the oversold region. Technically, the signals from applied indicators suggest price action may continue upward toward the 174 price level.
USD/JPY: Bearish
Similar to other major FX pairs with the US dollar as the base currency, the USD/JPY has been under pressure. Price action has stayed below the middle BB limit for most of the recent sessions. It briefly broke above the apparent resistance at the BB middle band in the previous session but has since retreated below it in the ongoing session.
Meanwhile, the SRSI indicator lines have a slight upward tilt from the oversold region. However, the pullback below the BB middle band has caused a deflection toward a potential bearish crossover. At this stage, it appears price action may descend toward the 145 price threshold.
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