Investors seem to be taking an optimistic stance on the greenback, which has supported the U.S. dollar against most major FX pairs. With the FOMC meeting still ahead later this month and the Michigan Consumer Sentiment expected to decline from a previous 55.1 to 54.2, investors are notably going long.
EUR/USD: Bearish
The EUR/USD market has broken its eight-month-long upward trend. This can be seen as the pair dived below the upward-sloping trendline as well as the 9-day Exponential Moving Average (EMA) line.
Bears have remained consistent with gains as the greenback continues to dominate its peers. Furthermore, while the SRSI indicator lines are still in the oversold region, they have yielded to bearish pressure as the lines of the indicator took a dive. Therefore, in the meantime, traders can still target the 1.1600 mark for short-term gains.
GBP/USD: Bearish
The GBP/USD pair shows a similar trajectory to the EUR/USD market analyzed above. This major FX pair has also fallen below the 9-day EMA line as well as the drawn upward-sloping trendline.
The market attempted to resume its upward movement, but downward forces seem overwhelming. The last price candle on this chart is a green doji candle, which keeps the pair trading below the 9-day EMA curve. The SRSI indicator lines retain a slight upward bearing, with the lead line barely above the 50 threshold. Be that as it may, this market may descend toward the 1.3400 price mark.
USD/CHF: Bullish
As expected, the U.S. dollar has continued to show dominance in this market. The USD/CHF pair has been edging upward since the previous session and remains on that path. As a result, this major FX pair has pushed through the 9-day EMA curve to trade above this technical landmark.
The SRSI indicator lines have also delivered an upside crossover above the 75 mark, with the ensuing lines maintaining an upward trajectory. Therefore, upside forces are likely to propel the market toward the 0.8050 price level.
USD/CAD: Bullish
While the U.S. dollar has stood tall against its peers, the narrative differs slightly for the USD/CAD pair, which has maintained a sideways path above the 9-day EMA curve. This is due to the Canadian dollar gaining some traction, although not strong enough to drive the market lower.
The fact that price action remains above the 9-day EMA still indicates some positivity for this pair. Meanwhile, the SRSI indicator shows a slight downward path toward the 80 mark, but since price action hasn’t shifted significantly, it suggests the market may bounce off the 9-day EMA line toward the 1.4000 price level.
AUD/USD: Bearish
The Australian dollar continues to be outperformed by the greenback, creating strong headwinds for this major FX pair. As a result, price action has fallen below the 9-day EMA curve.
The last price candle appeared as a red doji, signaling indecision, but its position below the 9-day EMA reinforces bearish sentiment. The SRSI indicator lines appear to be converging and seem headed for a downward crossover. Consequently, this market may edge lower toward the 0.6550 or even 0.6525 price level.
EUR/JPY: Bullish
The EUR/JPY market has experienced a strong upside boost, pushing through key psychological levels. This major FX pair catapulted upward over the past three sessions, and the market now trades above the 175.00 and even 177.00 price levels.
For the past two sessions, trading has remained above the 9-day EMA curve. Similarly, the SRSI indicator lines are rising steeply into the overbought region. Therefore, the 180.00 mark may serve as a medium-term target in this market.
USD/JPY: Bullish
The USD/JPY market has been climbing steadily for the past five consecutive sessions. The last three price candles on the chart are positioned above the 9-day EMA curve.
The SRSI lines are rising sharply toward the overbought region, suggesting continued bullish momentum. Therefore, traders can aim for the 155.00 mark in the near term.
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