With the interest rate data due for announcement today, the US dollar has gone softer. This seems to be emanating from the fact that investors are expecting a slightly lower announcement than the previous one. This has surely been noticeable on the majority of the major FX pairs. Let’s delve in deeper for more information below.
EUR/USD: Bullish
The EURUSD market seems to be gaining on the speculation that the interest rate data may arrive 0.25 lower than the previous at 4. This can be observed as the last price candle on this major FX pair’s daily chart appears green off the 9-day Exponential Moving Average.
The modest rebound as of the time of writing aligns with the converging appearance of the Stochastic Relative Strength Index (SRSI) lines, very much around the 70 mark of the indicator. Consequently, traders anticipate a pullback toward 1.1750. Nevertheless, this will depend largely on the outcome of the expected economic data, such as the Interest Rate and the FOMC projections due to emerge today.
GBP/USD: Bullish
Recently, the GBPUSD market has been making higher supports. However, the more recent price movement in this market appears similar to that of the EURUSD market. The last price candle here as well can be seen standing just above the 9-day EMA curve.
The mentioned price candle appears less compressed and therefore suggests that upside forces may have a stronger foothold in this market. The SRSI lines here are falling below the 80 threshold and clearly show no convergence.
While the appearance of the last price candle may suggest a possible rebound, traders may exercise caution in this market toward the 1.3400 price level.
USD/CHF: Bearish
The softer tone of the US dollar has also not gone unnoticed in the USDCHF market. Here, price action has retraced lower toward the 9-day EMA line, but the session has stayed bearish unlike the previously examined major FX pairs above.
However, since price action still stands above the 9-day EMA curve and keeps most of the increase seen five sessions ago, the SRSI indicator lines stay on a general upward trajectory.
However, the terminal part of the indicator is deflected toward a crossover. A favorable outcome from the Interest Rate data or the FOMC may initiate an upward bounce toward the 0.8100 price level.
USD/CAD: Bearish
Early into the week, the USDCAD market edged strongly lower, as can be seen via the corresponding price candle from three sessions ago. However, the US dollar has been able to pull together modest traction as we approach the Fed Rate data.
Be that as it may, the USDCAD market remains below the 9-day EMA curve. Also, the lines of the SRSI indicator remain in the oversold region, but the indicator lines are rising upward from the oversold region. As a result, this market may edge higher, but this hinges greatly on the outcome of relevant economic data.
AUD/USD: Bullish
Bulls in the AUDUSD market have been able to stick to consistent gains. Price action has stayed mostly bullish for the most part. As such, this major FX pair trades above the 9-day EMA curve.
Likewise, the ongoing session stays green, and meanwhile, the SRSI indicator lines have reached the heights of the overbought region. The latter part of the indicator can be seen descending toward the 80 mark following a merging in the SRSI lines. As such, this market may see a potential pullback toward the 0.6600 price level shortly after the US dollar strengthens.
EUR/JPY: Bullish
The EURJPY market has continued to see major breakthroughs. Price activity in this market has kept moving forward. Of late, this major FX pair breached the 180 ceiling and has continued rising.
As of now, the pair trades above the 182 price level. Even the ongoing session stays green.
Trading remains above the 9-day EMA curve. The SRSI indicator lines as well are rising steeply upward into the overbought region from the oversold zone. Therefore, it appears that this market may still proceed upward toward 183 and possibly higher over subsequent sessions.
USD/JPY: Bullish
Since the yen has been weakening over the past weeks, this has kept major FX pairs that have it as a quote on an upward path. As a result, price action in the USDJPY has also maintained an upward trajectory. The last price candle on this chart, however, presents a negligible bearish deflection.
Also, since price action is above the 9-day EMA, such a deflection may most likely be easily shaken off. Furthermore, the lines of the SRSI indicator can still be seen below the 50 threshold at this point in time. Therefore, upside forces have what it takes to proceed upward toward the 160 price level.
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