EURUSD jumped to fresh mid-March highs around 1.1270 earlier in the day but failed to preserve the upside momentum and has retreated to the opening levels since then. As a result, the common currency is threatening the 1.12 level once again. Still, the pair has a chance to finish the day above this handle which would be a confirmation of the latest breakout. In a wider picture, the euro remains positive, with upside risks still prevail. On the other hand, the bullish potential could be exhausted soon as the daily RSI is getting flat in the overbought territory. In the short term, the 1.12 level acts as immediate significant support.
GBPUSD has been trading marginally lower since the start of the day. It looks like the bulls decided to take a break after a five-day winning streak. Of note, the selling pressure looks fairly limited at this stage, suggesting the pair could regain the upside bias after a short-term period of consolidation. At the writing, the cable is flirting with the 200-DMA that comes around 1.2550. As the pair derailed the 1.26 figure yesterday, it may make another upside attempt in the near term. In this scenario, a decisive break above the mentioned barrier is needed for a bullish continuation. On the downside, the pound needs to hold above the 1.25 support zone in order not to suffer deeper losses.
USDJPY turned flat on the day after failed attempts to break above the 109.15 region where fresh two-month highs lie. As a result of a local pullback, the dollar got back below 109.00 but stays marginally below it, suggesting the downside risks could be limited in the short term. On the positive side, the pair stays above the key moving averages since yesterday which may signal the impeding decisive break out of the familiar range. However, the greenback will likely spend some time in consolidation so far, as the daily RSI shows no signs of bullishness any more, turning neutral again.
The cross extends the rally for the ninth day in a row on Thursday. Today, the pair climbed to the levels not seen since mid-January around 122.80. Should the euro make a successful run at this intermediate barrier in the near term, the 123.00 handle will come into market focus. Despite the overbought conditions, the cross retains a strong bullish tone, suggesting the ascent could continue, at least in the near term. On the weekly timeframes, the picture is extremely bullish but there is potentially strong resistance at the 100-DMA that comes around 123.00. So there is a high possibility that this level will cap the bullish potential down the road.
The Kiwi is directionless on Thursday, struggling to extend the ascent around 0.64. As a result of the recent rally, the daily RSI has entered the overbought territory during the recent trading and is turning neutral, suggesting the pair may be already losing its upside momentum. On the other hand, a daily close above the mentioned level will be a bullish sign in the daily timeframes. On the downside, the inability to hold above 0.64 will shift market focus back to the 200-DMA around 0.63. As long as the prices stay above this moving average, downside risks for the New Zealand dollar are limited.