EURUSD made bullish attempts just below 1.13 earlier in the day but was rejected from intraday highs and turned red. The pair has settled around 1.1230 since then and continues to oscillate around the lower end of the daily range. The daily RSI has corrected from the overbought levels and continues to point to the downside, suggesting further losses could lie ahead, at least in the short term. On the upside, the common currency needs to firmly regain the 1.13 initial barrier to shrug off the current downside pressure. Otherwise, more sellers could enter the game at still attractive levels.
GBPUSD is barely holding above the 100-DMA on Wednesday, struggling to regain the upside momentum since yesterday’s rejection from the 200-DMA around 1.2680. If the cable fails to hold above the mentioned support, the 1.25 level will come back into market focus. As the daily RSI is pointing slightly south, there is a possibility that the downside momentum will intensify in the short term. In other words, bearish risks prevail for the pair at this stage. On the upside, the pound needs to make a decisive break above the 1.27 barrier to return to mid-March highs registered a week ago marginally above 1.28.
USDJPY is flat since the start of the week, barring short-term spikes in volatility on the hourly timeframes. The pair continues to cling to the 107.30 area. On the upside, there are three significant resistance levels in the form of the daily moving averages. Meanwhile, short-term selling pressure is being capped by the 107.00 handle that remains in market focus, as a break below this level will open the way towards the 106.60 support zone and probably even lower levels. For now, it looks like the pair is not ready for a breakthrough and will likely remain within the familiar horizontal channel.
USDCHF failed to make a decisive break above the 0.9520 handle once again and turned negative on the daily charts. Despite the recovery from mid-March lows registered last week, the greenback struggles to regain a sustainable upside momentum and climb back above 0.95. The daily RSI is pointing slightly to the downside but looks neutral in general. The recovery potential persists as long as the pair remains above the 0.9460 area. On the weekly timeframes, USDCHF remains well below the 500- and 200-SMAs and retains a bearish slope since its rejection from the 0.99 handle in March.
The cross is marginally lower on Wednesday after a fairly aggressive rejection from the levels above 122.00 witnessed yesterday. The repeated failure to break this barrier suggests that the upside potential in the euro is limited at this stage. On the downside, the pair derives support from the 120.50 region while the next support levels arrive at 120. 30 and 120.00, respectively. As long as the prices stay above the latter, bearish risks are muted. Of note, the euro remains above the three moving averages on the daily timeframes, representing additional hurdles for the potential sellers in the medium term.