The US dollar seems to have developed some weakness against several of its counterparts. This has given this week’s major FX pairs a bidirectional character across some of the top markets. Let’s take a look at the price action for each pair below.
EUR/USD: Bullish
The EUR/USD market appears to be picking up some momentum due to the slight weakness of the greenback. This has allowed the major FX pair to retrace slightly from the support at the 1.1481 price level. Today’s trading activity has been particularly strong, judging by the size of the corresponding price candle. As a result, the pair is now testing the resistance formed by the 9-day Exponential Moving Average (EMA) line.
Similarly, the Stochastic Relative Strength Index (SRSI) indicator lines are rising from the oversold region following an upward crossover. Given a stable fundamental outlook, this major FX pair may soon resurface above the 9-day EMA curve, paving the way for more upward movement toward the 1.1750 mark.
GBP/USD: Bullish
The GBP/USD market shows a similar trajectory to the EUR/USD pair. The last two price candles on this chart also reflect upward retracement. The ongoing session remains strongly bullish but still trades a short distance below the 9-day EMA curve.
Likewise, the SRSI indicator lines are trending upward from the oversold zone, aligning technically with recent price action. Consequently, targeting the 1.3200 price level seems reasonable.
USD/CHF: Bearish
The USD/CHF market shows an opposite trend compared to the previously discussed pairs. This market began a downward trajectory during the previous session; however, the dollar appears weaker today, as reflected by the size of the corresponding price candle. As a result, price action has dipped further toward the support formed by the 9-day EMA curve.
The SRSI indicator lines are descending from their sideways movement near the 100 mark. The pair still trades above the 9-day EMA curve, and the SRSI lines remain in the overbought region. Therefore, traders can consider a short-term target around the 0.8044 price level.
USD/CAD: Bullish
Interestingly, the USD/CAD market has continued its northward trajectory despite the observed weakness in the US dollar. Price action in this market has maintained an upward course since last Thursday, pushing above the 9-day EMA curve. The ongoing session remains notably bullish, judging by the size of the most recent price candle on the chart.
The SRSI indicator lines have also risen into the overbought region. The lead line shows a slight deflection after reaching the 97 threshold. While the market appears to be nearing resistance, traders may still aim for the 1.4150 or 1.4200 price levels.
AUD/USD: Bearish
The AUD/USD pair is another major FX market heading south despite the dollar’s mild weakness. This pair has maintained a downward trajectory since price action bounced off resistance at the 0.6600 price level. Today’s trading has pushed the pair further below the 9-day EMA curve.
The SRSI indicator lines have also dipped into the oversold region. The lead line has reached the 10 mark, while the lagging line is around the 26 level. The distance between the two lines suggests increased volatility, which could lead to more significant market movement. Nevertheless, this market appears poised to approach the 0.6400 price level.
EUR/JPY: Bearish
Although the EUR/JPY market maintains a generally upward long-term trajectory, recent sessions have been less productive. Over the past two sessions, price action has remained below the 9-day EMA curve. However, the price candles can be seen hugging the EMA curve despite their bearish appearance.
Furthermore, the SRSI lines are descending into the oversold region, with the lead line showing a steeper downward slope, indicating strong bearish pressure. As a result, this market seems likely to edge toward the 176.00 price level, pending any contrary economic developments.
USD/JPY: Bearish
The USD/JPY market has recently been moving from one higher support to another. However, the ongoing session shows stronger bearish activity, judging by the size of the current price candle on the chart. This candle has brought the pair below the 9-day EMA curve, signaling increased selling pressure.
The SRSI indicator lines are also dipping toward the oversold region, with the lead line notably ahead of the lagging one — an indication of volatility. While further bearish movement toward the 151.50 price level may be expected, traders should closely monitor key fundamentals that could influence market direction.
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