The euro is trading marginally higher on Wednesday after yesterday’s failed bullish attempts. The pair remains capped by a local resistance on the way to 1.09, and the upside momentum is still limited. The short-term outlook for EURUSD looks neutral, suggesting the prices will continue the current consolidation around 1.0850 for the time being. Of note, the longer the common currency stays below the mentioned barrier, the higher the downside risks are getting. On the downside, it is essential for the euro to hold above 1.08. Otherwise, the pair may resume the decline and threaten recent lows around 1.0725.
GBPUSD tried to exceed the 50-DMA once again but has encountered offers marginally below the 1.25 barrier. The pair struggles to overcome this moving average for a long time already, suggesting the potential upside move will depend on further relations between the price and the SMA. Furthermore, even if the pair climbs above this line, the 200- and 100-DMAs will act as the next resistance levels. In other words, the pound will need the additional catalyst to challenge the mentioned resistance areas. As long as the prices remain below the SMAs, downside risks persist.
USDJPY has been losing ground for a sixth consecutive day already. The pair failed to finish above the 107.00 level yesterday and extended losses to fresh March 17 lows around 106.35 on Wednesday. Moreover, the selling pressure could intensify further if the pair get below the 106.00 handle in the near term. The daily RSI is pointing south, suggesting the greenback will likely remain under bearish pressure in the short term. In the one- and four-hour timeframes, the RSI is flat and nearing the oversold territory. Once below 30, chances for a short-term upside correction will increase.
The cross remains in a bearish mode and registered three-year lows on Wednesday. The euro dipped to the 115.34 level after yesterday’s plunge below 116.00. A break under this level triggered a more aggressive selling pressure that could persist for some time as the RSI hasn’t entered the oversold territory just yet. In the weekly timeframes, the technical picture has deteriorated further, and should EURJPY break below the 115.00 support, fresh long-term lows around 114.85 and then at 113.70 will come into market focus.
The Kiwi has been trending north for nearly a week already. After yesterday’s rejection, the pair has been challenging the 50-DMA once again. A decisive break above this moving average around 0.6060 is crucial for a bearish continuation in the short term. A daily close above the 50-DMA will confirm the breakout and could open the way towards fresh highs above 0.61. Today, NZDUSD climbed to the 0.6120 area but was rejected from fresh local highs. So far, the Kiwi remains positive in the daily charts but the upside momentum looks limited at the current levels.