EURUSD extended the rally to 1.1227 where the euro has encountered resistance and retreated slightly. Now, the common currency is trying to cling to the 1.12 handle as a daily close above this level will serve as a confirmation of the latest bullish breakout and could open the way to further gains. On the other hand, as the daily RSI is entering the overbought territory, further bullish potential could be limited. Furthermore, the inability to confirm a break above 1.12 could attract profit-taking and bring the euro back below 1.1150.
GBPUSD has been in the green for the fifth day in a row today. The pair briefly exceeded the 1.26 barrier earlier in the day but failed to confirm the breakout and retreated, changing hands marginally above the opening levels. Furthermore, the cable struggles to overcome the key resist stance levels in the form of the daily moving averages, suggesting the upside potential is limited while bearish risks could reemerge after failed attempts to make a decisive break above the mentioned psychological barrier of 1.26. The daily RSI continues to point upwards but could lose its bullish momentum as the index is already nearing the overbought conditions.
USDJPY rallied decently on Tuesday and tried to extend gains today. However, the prices have encountered a local resistance marginally below the 109.00 handle which remains the key hurdle for bulls. On the downside, the pair is supported by the 100- and 200-DMAs that converge around 108.50. As long as the greenback remains above this zone, bearish risks are limited. On the weekly timeframes, the pair has been rising for the fourth consecutive week already and looks poised to finish this week above the 20-SMA which would be a positive technical signal.
USDCHF has been rising modestly for the third day in a row on Wednesday. Despite the bullish bias, the dollar lacks the upside momentum to regain the 50-DMA around 0.9680 which acts as the key immediate resistance on the way above 0.97. the pair needs to make a decisive break above this level in order to see a more sustainable ascent. In a wider picture, USDCHF continues its consolidation in a fairly limited range and needs to get firmly above the 200-DMA around 0.9780 to challenge late-March highs in the 0.99 area.
USDCAD bounced from the 200-DMA and managed to turn positive on the day. Still, the pair remains vulnerable after the recent sell-off. On Wednesday, the dollar registered fresh nearly three-month lows around 1.3480 and has recovered to the 1.3550 are since then. The greenback is yet to confirm a rebound above the 1.35 handle on a daily closing basis as downside risks are still there. The daily RSI has bounced slightly from the 30 mark but the upside bias is too modest to bet on a more sustainable recovery. On the four-hour timeframes, there are some signs of the reemerging bullishness but the prices are still too far from the key moving averages.