This week’s analysis of major FX pairs demonstrates a bit of isolated effect on some of the pairs. This is the case despite the fact that there has not been any notable spark in the fundamentals surrounding the dollar. More details about the major FX pairs are given below.
EUR/USD: Bullish
The EURUSD has been consolidating above important technical levels for more than a week now. Since price action crossed above the middle limit of the Bollinger Bands (BB) indicator, momentum has not been strong enough to push significantly higher. The ongoing session has appeared green but so far presents very minimal upside movement.
The Stochastic Relative Strength Index (SRSI) lines have been falling toward the 50 threshold level of the indicator. Meanwhile, the BB indicator itself has maintained a sideways path, showing indecision in this pair. Consequently, traders will have to monitor the wires for any market-moving economic developments toward the 1.1800 price level.
GBP/USD: Bullish
The GBPUSD market has seen a notable short-term pullback. The downward retracement in this market has extended from last week’s close. As a result, this major FX pair has descended toward the middle limit of the BB indicator. Likewise, the BB indicator has only maintained a sideways path. At the same time, the lines of the SRSI indicator have plunged below the 70 level of the indicator.
Meanwhile, the lead line is diverging further. Technically, this hints that bearish momentum may be growing stronger in this market. Albeit, traders can anticipate a bounce at the middle band of the BB indicator. Otherwise, a fall below this technical level may signal a stronger decline toward the 1.3200 price level.
USD/CHF: Bearish
The USDCHF market has been lurking around a key technical level for about two weeks. However, the ongoing session has introduced a dip below the middle level of the BB indicator. Interestingly, this market still retains some bullish characteristics. Here, the extreme limits of the BB indicator are converging.
Likewise, the indicator line keeps to a slight upward trajectory despite the dip seen in the ongoing session. At the same time, the SRSI line has delivered a crossover at the 20 threshold, but the ensuing lines seem to have a sideways trajectory. Bearing these signs in mind, traders can anticipate an upward rebound off the 0.8000 price level, toward the 0.8060 mark initially.
USD/CAD: Bearish
The USDCAD pair demonstrates the earlier mentioned isolated effect. While the greenback is not in its best form, price action has climbed to a two-week high. The ongoing session can be seen staying on a bullish path.
The BB indicator as well can be seen taking to a slight upward trajectory as price activity maintains an upward bearing above the middle limit of the BB indicator. The SRSI indicator line can also be seen rising upward into the overbought region. The lead line can be seen already testing the 80 threshold level of the indicator. Therefore, this major FX pair may hit the 1.4000 threshold.
AUD/USD: Bullish
The AUDUSD market has been declining steeply. As a result, this major FX pair displays some isolated effect as well. This market has maintained a sharp downward trajectory that was picked from last week. Consequently, the market has descended very sharply.
The ongoing session stays bearish as indicated by the corresponding price candle. The SRSI indicator lines are also descending very steeply, reflecting the market trend. The culmination of technical indications for this market still aligns to hint at a continued downward retracement toward the 0.6400 price level.
EUR/JPY: Bullish
The bulls in the EURJPY market have not been able to breach the resistance at the 172 price level. Meanwhile, the BB indicator of late has assumed a sideways trajectory. The last two price candles on the chart are bearish while the most recent price candle has descended below the middle limit of the BB indicator.
The SRSI line has also performed a bearish crossover below the 80 level of the indicator. Consequently, market participants here may witness a strong price decline. Traders can eye a test of the 171 and 170 price levels in this market.
USD/JPY: Bearish
While the U.S. dollar has been able to hold its ground against some other major FX pairs, the USDJPY pair has a different narrative. Nevertheless, the BB indicator has a sideways bearing, with the last price candle on the chart staying below the middle limit of the BB indicator.
The lines of the SRSI indicator are below the 20 threshold of the indicator. The terminals of these indicator lines are merged and proceeding sideways there. Technically, this suggests that price action is within the grasp of the bears. Therefore, traders can anticipate a descent toward the 146.00 price level.
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