EURUSD struggles for direction after a brief rally witnessed yesterday. The pair has settled around 1.0870, with the key immediate resistance still coming around 1.09. On the downside, the common currency receives the intermediate support around 1.0850, and the downside risks are limited as long as the prices remain above 1.08. The daily RSI shows no directional impetus and has settled in the neutral territory, suggesting the euro will continue its current consolidation for some time. In a wider picture, the pair still needs to overcome the important resistance levels in the form of key moving averages.
GBPUSD has been trending higher on Thursday, having exceeded the 50-DMA during the recent trading. However, the cable is yet to confirm a breakout on a daily closing basis as the upside impetus is looking limited at this stage. On the other hand, the daily RSI continues to point upwards, suggesting further gains could lie ahead. If so, the 1.25 handle will turn into resistance, and the prices will target the 200-DMA around 1.2640. On the downside, the pair needs to hold above the 50-DMA so that to avoid a bearish correction. In the short-term charts, there are some conflicting technical signals, pointing to a consolidation in the immediate term.
USDJPY is trading in a flay manner on Thursday after six consecutive days of losses. The dollar failed to regain the 107.00 handle yesterday and came under the renewed pressure. As a result, the pair registered local lows around 106.35, holding slightly above this area today. If the greenback fails to switch into a recovery mode any time soon, the pair may initiate a move to the next bearish target around 105.80. in a wider picture, downside risks persist as long as the pair stays below the key moving averages.
USDCHF is on the back foot again but remains in a familiar trading range limited by the 200- and 50-DMAs. During the recent trading, the pair received support around the 0.97 handle and bounced slightly. Nevertheless, the prices remain in the negative territory on the daily charts, suggesting the selling pressure could intensify in the short term should the above-mentioned support give up. The daily RSI looks directionless in the neutral zone which may be a sign of the upcoming consolidation in the short term.
USDCAD continues to grind lower after yesterday’s plunge, finishing the week on a strongly downbeat note. The pair failed to hold above the 1.39 handle and extended losses to one-month lows around 1.3850. it looks like the dollar has formed a short-term symmetrical triangle on the daily timeframes. If so, the pair could shift into a recovery mode around the above-mentioned lows. In this scenario, USDCAD will target the 1.39 level first. Once above this level, the prices may regain the 1.3990 resistance area. On the downside, the greenback may dip toward the 1.38 figure should the selling pressure persist.