EURUSD struggled to stay above the 100-DMA on Thursday and has accelerated the decline today. As a result, the euro fell back to the 50-DMA below the 1.09 handle. Now, the common currency is clinging to this critical level, with a daily close below it will send the pair to 1.08, or even lower. On the upside, the immediate resistance now arrives at 1.0960, where the mentioned 100-DMA lies. In a wider picture, the euro needs to regain the 1.10 barrier to shrug off the current bearish pressure. The daily RSI continues to point south, suggesting the prices will stay on the defensive so far.
GBPUSD continues to gradually grind lower today, still following the descending 50-DMA. The fact that the pair dipped below the 1.22 handle point to further deterioration in the short-term technical picture. The cable registered four-day lows around 1.2160 and remains on the defensive despite a slight bounce. The daily RSI is pointing south, suggesting the selling pressure could persist for some time. On the downside, the 1.2070 figure should act as support. Once below, the pair could derail the 1.20 psychological handle for the first time since late-March.
USDJPY remains in a tightening range between the 50- and 100-DMAs since the start of the week. A prolonged period of consolidation suggests the pair may stage a breakthrough in either direction in the short term. On the upside, an important target arrives around 108.40, where the 100- and 200-DMAs nearly converge. If the dollar fails to hold around the current levels, the 50-DMA at 107.00 will likely act as support again. Meanwhile, the technical picture on the weekly timeframes looks better, with the pair finishing the second consecutive week in the green territory. The prices stay shy of the 200-SMA that comes around 108.40, confirming the strength of this resistance level.
The cross has accelerated its retreat from mid-April highs registered yesterday. The euro was rejected from the 118.50 area that acted as the nearest resistance on the way towards the 100-DMA marginally below the 119.00 figure. On Friday, the pair extended the pullback to 117.00. If this level holds, EURJPY could stage a bounce and regain the 50-DMA. The RSI on the four-hour timeframes looks neutral, suggesting the pair may spend some time in a consolidative mode before decides on further direction. In the one-hour charts, the RSI has recovered from the oversold territory and pointing slightly higher. So, it is possible that the cross will make further recovery attempts in the near term.
USDCAD bounced from this week lows below 0.39 and switched into a recovery mode on Thursday, extending gains today. The pair exceeded the 0.40 handle for the first time since Monday and registered local highs around 1.4040. Nevertheless, the dollar remains in the red territory on the daily timeframes and is yet to make further gains to erase the recent losses. Should the pair manage to break above the mentioned highs, the next resistance will arrive at 0.41. On the downside, the immediate support is represented by the 0.40 psychological level. As long as the prices remain above this level, the short-term dynamics is considered bullish.