After some hesitation earlier in the day, EURUSD resumed the ascent after a rally witnessed yesterday. As a result, the pair registered late-March highs around 1.1030 and retreated slightly afterwards. So, the euro is yet to confirm the latest breakout on a daily closing basis. If the pair finishes below 1.10, downside risks may reemerge. On the downside, the immediate support now arrives at 1.0960 where the 100-DMA lies. as long as the common currency remains above this region, the bulls are in control on the short-term timeframes.
GBPUSD has settled around the 50-DMA as the upside momentum has faded after yesterday’s brief rally towards 1.2360. following a rejection from this area, the pair got back below 1.23 and it looks like the cable is ready for a consolidation phase around the mentioned moving average before it decides on further direction. In the short-term, the prices need to hold above the 1.2250 intermediate support in order to avoid a deeper downside correction. The daily RSI reversed south after a short-term recovery, suggesting downside risks continue to persist.
USDJPY turned higher today after a modest decline seen on Tuesday. The pair bounced from intraday lows around 107.35 and climbed to 107.90, still staying shy of the 108.00 handle which is the key immediate barrier for dollar bulls. In general, the technical picture in the daily charts remains almost unchanged, with prices staying in a consolidative mode as long as the pair is trading below the 100- and 200-DMAs that nearly converge around 108.40. significant support still arrives marginally above the 117.00 figure.
The cross has been rallying for the third day in a row on Wednesday, having extended gains to the 100-DMA that acts as a local resistance. Once above this moving average that comes around 118.50, EURJPY could retest today’s intraday highs marginally below 119.00 and continue its ascent to the next upside target in the form of the 200-DMA around 119.20. on the downside, significant support arrives at 118.10 and then at 117.40, where the 50-DMA arrives. On the weekly timeframes, the technical picture continues to improve as the pair has been rallying for the third consecutive week.
USDCHF bounced strongly after the recent plunge and recouped nearly all yesterday’s losses on Wednesday. The pair peaked at 0.9730 earlier in the day and has retreated slightly since then, flirting with the 50-DMA at the writing. A daily close above this moving average that arrives around 0.97 will confirm the local recovery. Otherwise, the dollar may resume the downside movement in the short term. On the four-hourly charts, the pair has just created a long upper wick, suggesting the bullish potential is limited at this stage.