EURUSD peaked at 1.1422 yesterday and started to retreat, failing to confirm the latest breakout. The euro was trading directionless earlier in the day but turned negative in recent trading. However, the fact that the common currency is holding above the 1.13 level suggests that the pair may avoid a deeper correction and resume the ascent after some consolidation. On the upside, the 1.14 barrier remains the key level for bulls. A decisive break above this level will open the way to fresh multi-week highs. In case of an extended correction, a break below 1.13 could bring market focus back to 1.12.
GBPUSD turned negative in the daily charts for the first time in ten days. The pair was rejected yesterday from three-month highs marginally above 1.28 and retreated to the 1.2640 region on Thursday. During the correction, the pound dipped under the 200-DMA. A daily close below this moving average may signal the increasing downside pressure in the short term. The daily RSI reversed south around the overbought levels, suggesting profit-taking could continue in the short term before buyers will re-emerge at more attractive levels. Now, cable needs to reclaim the mentioned 200-DMA as support in order to avoid a more aggressive downside correction.
USDJPY continues to lose ground for the fourth consecutive day on Thursday. The pair dipped to fresh nearly one-month lows around 106.80 and struggles to regain the 107.00 handle. The technical picture will deteriorate further if the dollar finishes the day below this level, especially as the prices have settled below the key moving averages that turned into resistance levels again. On the hourly charts, USDJPY declined below the 20-SMA while the RSI is pointing south, suggesting the downside pressure will persist, at least in the near term. In case of a bearish continuation, the immediate support is expected at 106.50 if the 106.80 area gives up.
NZDUSD rose to late-January highs marginally below the 0.66 handle yesterday and switched into a corrective mode, threatening the 0.6450 area. Despite the retreat, the overall technical picture remains positive in the daily charts, with bearish potential remains limited as long as the prices stay above the 50-DMA around 0.6125. On the four-hour timeframes, the New Zealand dollar is nearing the 50-SMA which is a critical level for further dynamics in the pair. If the prices manage to stay above this level, it would be a bullish sign, suggesting the upside impetus could reemerge soon.
USDCAD dipped to fresh three-month lows on Wednesday but managed to bounce quickly, creating a long lower wick in the daily charts. This is traditionally a signal of a limited downside potential. Today, the pair extended the recovery and even exceeded the 200-DMA around 1.3465. In recent trading, the dollar briefly pierced the 1.35 handle for the first time since the start of the week but is yet to confirm a breakout on a daily closing basis. In a wider picture, despite a local bounce, the technical outlook for the pair remains bearish, both in the daily and in the weekly timeframes.