The fundamentals surrounding the major FX pairs have left the greenback slightly weaker. U.S. Building Permits (Preliminary) and Housing Starts are expected to post only marginal gains — Building Permits rising from 1.33 to 1.34, while Housing Starts are projected to climb from 1.30 to 1.33. As a result, several major currency pairs are edging higher overall.
EUR/USD: Bullish
The EUR/USD market has rebounded off a baseline at the 1.1560 price level. The current price candle stands just above the 9-day Exponential Moving Average (EMA) curve.
Additionally, the Stochastic Relative Strength Index (SRSI) indicator lines are trending positively after a bullish crossover below the 20 level.
Although the ensuing upward movement in the SRSI appears somewhat exaggerated, it still implies that the major FX pair could push further upward toward the 1.1750 resistance level.
GBP/USD: Bullish
The GBP/USD market shows a similar structure to EUR/USD, although its bullish surge began only in the previous session. The ongoing session suggests that investors remain focused on higher price targets.
The latest price candle appears green but stands above the 9-day EMA curve. The SRSI indicator maintains a strong upward trajectory following the last bullish crossover within the oversold region. Consequently, this setup hints at a potential move toward the 1.3500 price mark.
USD/CHF: Bearish
The USD/CHF market has been trending lower since Tuesday, largely because the Swiss franc has been gaining strength amid the dollar’s recent weakness. The ongoing session has retreated below the 9-day EMA line and appears red, signaling that sellers remain dominant.
Meanwhile, the SRSI lines have dipped deeply into the oversold region. However, their exaggerated downward movement suggests that bearish momentum may soon wane, possibly leading to a rebound toward the 0.8400 price level.
USD/CAD: Bullish
The USD/CAD pair has been on an upward trajectory since bouncing off the 1.3600 support level in July. However, the market has remained relatively flat in recent sessions. Still, price action remains above the 9-day EMA curve, indicating potential to regain traction and extend its upward retracement.
The SRSI indicator lines are holding above the 80 level, suggesting strong bullish pressure. The latest candle, which forms a Doji, reflects tension between buyers and sellers. With the SRSI lines converging, a short-term pullback toward the 9-day EMA may occur before another bounce upward toward the 1.4200 mark.
AUD/USD: Bearish
In the AUD/USD market, price action has retreated below the 9-day EMA curve and continues consolidating beneath it. The latest price candle appears red, confirming that bearish forces remain in control.
The SRSI indicator maintains a general upward slope but shows visible convergence, hinting at a possible bearish crossover. Consequently, this pair seems set for a modest decline toward the 0.6450 price level.
EUR/JPY: Bearish
The EUR/JPY market recently reached new highs, breaking above the 170.00 threshold before facing rejection near the 176.00 level. The latest candle is a red inverted candle, which has just breached support at the 9-day EMA line.
Previously, the SRSI had converged for an upward crossover, but following the EMA breach, it has turned downward. As the indicator lines descend toward the 50 level, traders might expect a potential rebound from around the 175.00 zone.
USD/JPY: Bearish
The USD/JPY pair has taken a significant hit from the dollar’s recent weakness, causing the pair to fall below the 9-day EMA curve. The latest candle confirms that the pair remains under bearish control.
The SRSI indicator lines continue descending into the oversold region and are currently diverging, reflecting sustained selling pressure. The candle’s structure suggests moderate bearish momentum, which could drive prices further down toward the 148.00 level in the near term.
Get access to lifetime VIP membership. Join us here.
Leave a Reply