Earlier in the day, EURUSD rallied to three-month highs around 1.1385 but was rejected from fresh tops and retreated aggressively. The pair turned negative on the daily timeframes, threatening the 1.13 support area at the writing. Should this level give up, the next target is expected at 1.1285, where the daily lows arrive. Meanwhile, on the weekly charts, the technical picture remains positive despite the recent retreat below the 200-weekly moving average. At that, the daily RSI is signaling the bullish momentum is waning at this stage, suggesting a deeper downside correction could be in the cards.
The cable has exceeded the 100-DMA for the first time since March 10 while the 200-DMA turned into support during recent trading. The pair climbed to 1.2690, and it looks like the pound is ready to challenge the 1.27 handle in the short-term. On the other hand, this level may attract profit-taking, especially considering the upcoming weekend. In this scenario, the prices may correct down to 1.26 or lower by the end of the day. The daily RSI, however, continues to point north and hasn’t entered the overbought territory just yet, suggesting the bullish potential is probably not exhausted just yet.
USDJPY rose to late-March highs around 109.40 earlier in the day but failed to preserve the upside momentum and turned flat on the day. Still, the pair is holding above the 109.00 handle that acts as the immediate significant support, which is a bullish sign. On the weekly timeframes, the prices have been rising for the fourth week in a row, having accelerated the ascent during this week. Of note, the greenback is nearing the 109.60-109.80 region, where the 100- and 200-weekly moving averages arrive. This area could act as a strong resistance zone and prevent the pair from further rally.
USDCHF turned positive on Friday following two days of decent losses. As a result, the pair bounced from fresh late-March lows around 0.9540 and rose to 0.9590. It looks like the dollar will need the additional bullish impetus in order to challenge the 0.96 handle which is seen as the key immediate resistance. On the downside, the prices could derive support from the mentioned lows if the selling pressure reemerges any time soon. In a wider picture, the greenback needs to regain the 50-DMA around 0.9680 in order to see more sustainable gains in the days to come.
The Aussie continues its winning streak for the seventh day in a row on Friday. The pair rose to fresh early-January highs slightly above the 0.70 handle in recent trading and retreated slightly. The daily RSI is getting flat in the overbought territory, suggesting the rally could get out of steam soon. If so, the initial target for sellers will arrive at 0.6950. On the upside, the prices need to make a decisive break above the 0.70 barrier in order to extend the ascent. Once above this level, AUDUSD could challenge the 2020 highs around 0.7020.