EURUSD turned mildly positive on the day after a dip to 1.1275 earlier. At the time of writing, the pair is trying to regain the 1.13 handle while the intraday highs were registered around 1.1340. Despite a decent retreat witnessed yesterday, the common currency remains within a bullish trend and still looks set to challenge the 1.14 barrier once again. However, the prices need to make a decisive break above this handle in order to see a bullish extension. The daily RSI is close to overbought levels, suggesting the upside potential is limited at the moment. So, some consolidation could be expected in the immediate term before the euro decides on further direction.
During earlier bearish attempts, GBPUSD derived support from the 100-DMA around 1.2540 on Friday. As a result, the pair bounced and regained the 1.26 handle, with the 200-DMA acting as the immediate resistance. As the daily RSI has corrected lower from the overbought territory and turned neutral, it is possible that the pound will spend some time in a consolidation mode, or even will see a deeper retreat before the bulls reenter the market. On the weekly timeframes, the pair is finishing the week in the red but still looks bullish, clinging to the 50-weekly MA.
During the latest sell-off, USDJPY managed to hold above the 106.50 region and bounced from one-month lows. As a result of a local upside correction, the dollar regained 107.00 and registered intraday highs around 107.55. The daily RSI reversed north and is now pointing higher, suggesting the recovery could continue in the short term. On the four-hour charts, the technical picture has improved substantially since the start of the say, as the dollar has exceeded the 20-SMA and is now challenging the 200-SMA. However, the pair remains on the defensive in the longer term, with USDJPY staying below the key daily moving averages following a four-day losing streak.
The cross declined to early-June lows during the Asian hours but reversed quickly and saw a strong local rally towards 121.80. However, the prices have retreated since then, changing hands around 121.30 at the time of writing. It looks like the euro has found a bottom following five consecutive days of losses and ready for an upside correction now. Of note, the pair managed to hold above the key moving averages during the recent sell-off, suggesting bearish risks are limited at this stage. A daily close above 121.00 will confirm the recent bounce and signal some improvements in the technical picture on the daily charts.
USDCHF plunged to three-month lows below 0.94 yesterday. As the pair reversed losses quickly, a long lower wick was created on the intraday timeframes. On Friday, the pair’s bullish attempts were capped by the 0.9480 region. As a reminder, the dollar started the week at 0.9640 and thus sees deep losses on the weekly charts. In the short-term, the greenback needs to hold above the 0.94 figure so that to avoid another sell-off that could threaten the mentioned multi-week lows. On the upside, a decisive break above 0.95 will signal further easing in the selling pressure surrounding the dollar.