The US dollar continues to show weakness due to geopolitical tensions surrounding the United States of America. This has undoubtedly shaped the landscape of this week’s major FX pairs analysis. Let’s dive in below.
EUR/USD — Bullish
The EUR/USD market saw a notable upward rebound over the past two sessions. This caused the major FX pair to resurface above the 9-day Exponential Moving Average (EMA) line. However, the ongoing session is bearish and presents a modest downward retracement.
Nevertheless, trading activity persists above the 9-day EMA curve. Meanwhile, the Stochastic Relative Strength Index (SRSI) indicator lines remain tilted upward and are already above the 70 threshold, although they appear to be moving rather quickly. Still, the market may edge higher toward the 1.1800 level, but traders should monitor developments that could trigger a shift in market direction.
GBP/USD — Bullish
Since the start of the week, the GBP/USD market has clung to an upward trajectory. However, it is visible that price action has seen a significant decline in upward momentum.
The most recent price candle on the daily chart appears highly contracted but remains above the 9-day EMA curve. Likewise, the SRSI indicator lines are in the oversold region, but the terminal ends of the indicator are rising steadily out of it. In general, and pending any major economic developments, the market may edge toward the 1.3500 level.
USD/CHF — Bearish
The US dollar remains very weak against the Swiss franc. As such, the pair has fallen to a previous support at the 0.7846 level. Although the ongoing session has seen a modest upward bounce, it has not recovered losses from the previous session.
Consequently, the pair continues to trade below the 9-day EMA curve. Likewise, the SRSI indicator lines are dipping rapidly into the overbought region. As a result, this market remains vulnerable and may descend again toward the 0.7846 level.
USD/CAD — Bearish
The USD/CAD pair has been on a losing streak since the start of the week. The last three price candles on the chart are red and of notable size. The ongoing session is also taking place below the 9-day EMA curve, reinforcing the bearish tone.
Similarly, the SRSI indicator lines are falling steeply into the oversold region, with the lead line already below the 50 threshold. Indications from this market still suggest that price action may drop toward the 1.3750 level.
AUD/USD — Bullish
The AUD/USD market has been gaining strongly on the weakness of the US dollar. This major FX pair has remained in the green since the start of the week. As such, price action has moved sharply above the 9-day EMA curve, and the ongoing session continues to trade well above it.
Meanwhile, the SRSI indicator lines are pushing further into the overbought region. Considering the strength of upside momentum, this market appears poised to advance toward the 0.6800 level.
EUR/JPY — Bullish
The EUR/JPY market has resumed trading above the 185 level. This price zone lies above the 9-day EMA curve, even though the ongoing session is marked by a red price candle.
At the same time, the SRSI indicator lines continue to rise following an upside crossover above the EMA. The lead line has moved past the EMA, while the lagging line remains below the 50 mark. Nevertheless, upside prospects remain viable, and the market may push higher toward the 186 level.
USD/JPY — Bearish
Unlike several other major FX pairs, the USD/JPY market has managed to sustain an upward trajectory. The price candles for the past two sessions have remained green, although they appear highly compressed.
Despite this, they have held above the 9-day EMA curve. The SRSI indicator lines are in the oversold region and are converging toward a potential upside crossover. As such, this market appears to be holding onto an upward path toward the 160 level.
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