EURUSD failed to hold above the 1.08 level and extended losses to April 24 lows around 1.0780 on Wednesday. Following the sell-off, the common currency managed to trim losses. Now, the pair is trying to cling to 1.08 but downside risks persist. The daily RSI continues to move south, suggesting the bears will remain in control, at least in the short-term. On the four-hour timeframes, the prices remain well below the key moving averages, adding to the negative short-term technical picture. If the euro fails to hold around the current levels and finishes the day below 1.08, further losses may be ahead for the common currency.
GBPUSD has got back below the 50-DMA around 1.24 and continues to trend lower after a rejection from the 200-DMA last week. It looks like the pair is ready to extend losses in the short term as the daily RSI is pointing lower, and the prices have settled below the key moving averages. Despite the current bearish dynamics, the technical picture on the weekly timeframes remains neutral as long as the pound stays above 1.2150. On the upside, a significant barrier arrives at 1.2650, where the 50-weekly moving average lies. Meanwhile, on the hourly charts, there are some signs of consolidation, suggesting the selling pressure may ease in the immediate term.
USDJPY has accelerated the downward move on Wednesday, suffering losses for the fourth consecutive day. The pair remains capped by the 20-DMA for nearly a month already, and as long as the prices remain below this moving average, downside risks will likely persist. Today, the greenback derived support from the 106.00 level, where mid-March lows lie. If this support area gives up, the prices will target 105.80 and then the 105.00 area. On the upside, USDJPY needs to get back above the mentioned moving average around 107.30 in order to shrug off the current bearish pressure.
The cross has been suffering aggressive losses since the start of the week. The pair’s bullish attempts were capped below the key moving averages last week, and the technical picture keeps worsening since then. Today, the euro dipped under the 115.00 handle and registered more than a one-year low of 114.60. Despite a slight bounce, EURJPY remains under the selling pressure and may extend losses as the daily RSI is pointing south but hasn’t reached the oversold territory just yet. If the mentioned lows fail to act as a support zone, the 114.00 figure may come into bears’ focus.
USDCHF retains its bullish bias after the rally witnessed yesterday. The pair has been rising for the third day in a row and may add to further gains if the 200-DMA gives up. This moving average arrives marginally below the 0.98 handle and acts as the key hurdle for bulls now. The dollar registered the intraday high around 0.9760 and retreated marginally. It looks like the bulls may pause before another attack at fresh local tops. In general, the technical picture in the daily charts looks positive as long as the greenback stays above the 0.96 figure which acts as a significant support area. Also, minor support arrives at 0.9640, where the 50-DMA lies.