EURUSD has encountered the 100-DMA again on Wednesday and bounced marginally. Still, the pair stays in the positive territory on the daily charts, retaining a bullish tone for the fourth day in a row. On the downside, the euro is supported by the 50-DMA that has now declined below 1.08. It looks like the common currency will remain range-bound for some time before a breakthrough in either direction takes place. The daily RSI is pointing slightly upwards, suggesting the prices may retain the upside bias in the short term and even make further bullish attempts. However, as long as the euro remains below 1.10, the technical picture remains neutral.
GBPUSD is flat on the day, still being capped by the 50-DMA that the prices have been following for more than a month already. The pound was rejected from the 1.23 handle yesterday, and the upside potential remains limited at this stage. On the four-hour timeframes, there are signs of waning bullish momentum, with the short-term technical picture getting neutral. On the downside, the intermediate support levels arrive at 1.2240 and 1.2220. Once below, the cable may challenge the 1.22 handle. If so, the recent bullish attempts will be considered a failure.
USDJPY registered intraday highs around the 108.00 figure earlier in the day and turned flat afterwards. The dollar bounced from the 20-DMA at the start of the week but struggles to see a more robust and sustainable recovery momentum, as there is strong resistance on the way north in the form of the 100- and 200-DMAs that nearly converge below 108.50. Considering this strong upside hurdle, it looks like the pair will resume the decline after the current consolidation with a modest upside bias. However, a break above the mentioned moving averages will mark a new stage in the dollar’s recovery.
The cross has been rising for the fifth day in a row on Wednesday. The euro extended gains to 118.20 yesterday but now struggles to get back above the 118.00 handle, suggesting the upside impetus is probably waning after the recent rally. Still, the pair remains fairly positive on the daily timeframes and could make fresh upside attempts after a short-lived pause. On the four-hour charts, the technical picture looks strongly bullish as long as the cross stays above the key moving averages.
NZDUSD registered more than one-week highs around 0.6140 on Wednesday. The pair managed to recover above the 50-DMA at the start of the week and has been climbing since, rising for the third consecutive day. Despite a fairly strong local rally, the daily RSI is far from overbought territory, suggesting the New Zealand dollar could add to gains, at least in the short term. Once above the mentioned highs, the prices may target the next resistance levels of 0.6155 and 0.6175. On the downside, the 0.61 handle acts as the immediate important support.
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