EURUSD trimmed intraday losses after a dip to a one-week low of 1.0774 but remains below the 1.08 figure. The pair failed to test the 1.09 barrier on Wednesday and has been under pressure since then. After a rejection from local highs, the short-term technical picture has deteriorated again, with the daily RSI showing a bearish bias, suggesting the sellers will remain in control, at least in the immediate term. on the hourly timeframes, the RSI is nearly flat just around the oversold levels, which may point to slowing downside pressure. Even in this case, the euro is not expected to stage a robust rebound any time soon as most technical indicators signal that the upside potential is limited at the moment.
GBPUSD continues its losing streak for the fourth day in a row on Thursday. The pair failed to regain the 50-DMA earlier in the week, and the selling pressure has intensified since then. Today, the cable registered five-week lows around 1.2165 and remains below 1.22 despite a bounce from the local bottom. As a result, the daily RSI continued to move toward the oversold levels. Meanwhile, the relative strength index turned slightly higher on the short-term timeframes but the bias is too modest to bet on a strong bounce above 1.22 in the near term. On the downside, the next support comes around 1.2130 if the negative pressure persists.
USDJPY is flat on the day, further struggling around the 20-DMA that remains in market focus this week. The dollar extends its consolidation around the 107.00 handle after a strong rejection from the 107.80 area. The path of least resistance for the pair remains to the downside as there are several resistance levels on the way north now. In a wider picture, the greenback remains in a consolidation mode since early-April, and it looks like the prices will stay within the familiar range until a more significant catalyst pushes the dollar in either direction. Failure to regain the 107.00 figure could send the pair below 106.70.
AUDUSD has been on the defensive since the start of the week, declining gradually toward the 50-DMA. Today, the pair slipped to 0.64 for the first time in a week, and if this level fails to hold the selling pressure, the prices will first target the 0.6370 region that acts as the intermediate support on the way towards the mentioned moving average around 0.6270. In the four-hour charts, the Aussie got under the 50- and 100-SMAs, and the short-term technical picture has deteriorated further as a result. On the upside, a fairly stiff resistance lies in the 0.6520 region where the 100-DMA arrives.
The cross remains nearly flat for since yesterday, having settled around the 50-DMA. The pair is stuck in a tight range and struggles for direction after bullish attempts were capped around 0.8875. On the other hand, there are strong support levels in the form of the 200- and 100-DMAs. As long as the euro remains above these moving averages, the technical picture looks neutral in the short term. The RSI both in the short-term and daily timeframes looks directionless, suggesting EURGBP will spend some more time in a consolidation mode before it decides on a further direction.