The rally in the common currency has accelerated on Friday. EURUSD pierced the 1.11 barrier and climbed to two-month highs around 1.1145. A break above this region will send the pair to mid-march highs just under the 1.12 handle. The daily RSI is nearing the 70 figure and is about to enter the overbought territory, suggesting the bullish momentum could wane soon. Furthermore, there are already overbought conditions on the four-hour timeframes, so the risk of a bearish correction is rising. Anyway, a daily and weekly close above the 1.11 zone will confirm the latest breakout.
GBPUSD climbed to more than two-week highs around 1.2370 and remains elevated in the daily charts. Despite the pair continued to move north on Friday, its upside potential looks limited at this stage. The daily RSI is pointing slightly upwards but the bias is too modest to bet on more sustainable gains. The cable needs to break the 1.25 handle in order to enter a neutral territory. However, the pair’s gains look quite impressive on the weekly timeframes after a more tepid recovery witnessed during the previous week. In the short-term, GBPUSD is following the 50-DMA that turned into support recently. A break below this moving average will signal a false breakout.
USDJPY has accelerated its decline on Friday and is now trying to hold above the 20-DMA. The dollar needs to reclaim the 107.00 handle as support, otherwise, the pair may suffer deeper losses in the days to come. A breakdown would mean a long-awaited exit from a tight familiar trading range. The daily RSI has turned lower in recent trading, suggesting the selling pressure will likely persist in the near term. On the weekly timeframes, the dollar is finishing a bearish week after two weekly gains seen previously. The 20-week SMA continues to cap upside attempts in the pair.
The cross continues its ascent since the start of the week. Today, the pair climbed to two-month highs around 119.50 and is further challenging the 200-DMA. A daily and weekly close above this moving average that comes around 119.25 will act as a strong bullish signal, suggesting the rally could continue next week. The daily RSI remains elevated but is about to enter the overbought territory. As such, the cross may proceed to a bearish correction before another bull run takes place. On the downside, the immediate support now arrives at 119.00 while a break below this level will bring the 100-DMA around 118.70 back into market focus.
USDCHF registered early-May lows earlier in the day and bounced to the flat-line afterwards. The pair dipped to the 0.96 support zone but managed to hold above this level. The intraday resistance arrives at 0.9650. As long as the dollar remains below this level, downside risks persist. Once above this local barrier, the prices may retarget 0.97. a significant upside hurdle comes marginally below this level, where the 50-DMA lies. USDCHF needs to make a decisive break above this line in order to regain the upside momentum.