The U.S. dollar received a boost from better-than-expected labor market data. This development has had a notable impact on most major FX pairs. As a result, many of these pairs are posting gains and are set to close the year’s trading activities in positive territory.
EUR/USD — Bearish
The EUR/USD market has seen a notable pullback from its upward trajectory. This move began four sessions ago, pushing the price below the 9-day Exponential Moving Average (EMA). While sentiment remains unchanged, the market has continued to trade lower.
Meanwhile, the Stochastic Relative Strength Index (SRSI) lines are falling sharply into the oversold region. This decline appears relatively steep, considering that price has only moved modestly lower since the downward correction began. Overall, bears remain in control, although downside pressure may encounter support around the 1.1710 level.
GBP/USD — Bearish
The GBP/USD market experienced a somewhat erratic upward movement in recent weeks, originating around November 3. The latest bearish retracement has persisted since the previous session, albeit with moderate momentum.
The most recent price candle has pushed the pair below the 9-day EMA. Similarly, the SRSI lines are dropping rapidly toward the oversold zone. At this stage, the market may drift toward the 1.3400 price level unless countervailing fundamentals emerge.
USD/CHF — Bullish
The USD/CHF pair has been supported by favorable U.S. dollar fundamentals. The market has been trending higher since last Thursday, with momentum strengthening during the most recent session.
The current price candle has broken above the 9-day EMA, placing the pair above this key technical level. Additionally, the SRSI lines are sharply rising from the oversold region, suggesting continued upside potential toward the 0.8000 price level.
USD/CAD — Bullish
The USD/CAD market previously experienced one of the steepest downward corrections among major FX pairs, beginning in late November. Price fell from above the 1.4000 level before rebounding just above the 1.3700 support zone.
Recently, price action has been advancing toward the 9-day EMA. The latest candle is bullish, with its upper shadow testing resistance at the EMA. At the same time, the SRSI lines are moving toward the 70 threshold, indicating that bullish momentum may persist toward the 1.3800 level.
AUD/USD — Bearish
The AUD/USD market gradually lost bullish momentum over the previous week. As of the current session, bears have clearly taken control, pushing the price below the 9-day EMA. Downward pressure is evident from the appearance of the current price candle.
In response, the SRSI lines are plunging into the oversold region, with the lead line driving the decline. This reflects strong bearish momentum and suggests that price action may fall toward the 0.6600 level, barring any shift in market sentiment.
EUR/JPY — Bearish
Price action in the EUR/JPY market has continued to consolidate around the 184 level. The 9-day EMA has effectively acted as a baseline for price movement. The most recent candle places the pair slightly above the 184 threshold, suggesting that bullish forces retain some influence and may be eyeing the next psychological resistance.
Meanwhile, the SRSI lines are generally trending downward into oversold territory. However, the narrowing gap at the indicator’s terminal end suggests that bullish momentum is attempting to remain active. Consequently, the market may advance toward the 185 level.
USD/JPY — Bearish
Similar to several major FX pairs, the USD/JPY market has continued on an upward path. The pair recorded a moderate rebound in the previous session, with the latest candle closing bullishly above the 9-day EMA.
The SRSI lines are edging upward following a crossover near the oversold region. Although the indicator lines remain closely aligned, the prevailing outlook suggests that the market could continue higher toward the 158.00 price level.
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