EURUSD has been suffering losses for a third day in a row. Today, the pair faced the immediate resistance around 1.1260 where the bears reentered the game. At the same time, the prices continue to derive support from the 1.12 handle which if withstands the pressure could act as a catalyst for a bounce. On the four-hour charts, the common currency is flirting with the 100-SMA around 1.1230 that could cap further bearish attempts. However, as the daily RSI is pointing south, it looks like the downside bias will persist in the immediate term.
Cable plunged to early-June lows during recent trading, having extended losses to 1.2445, just above the 50-DMA. The pair failed to stage a sustainable recovery above 1.25 and briefly dipped below the 100-DMA as the selling pressure reemerged on bullish attempts. As a result, GBPUSD turned negative on the weekly timeframes and retreated under the 50-weekly MA. The technical picture could deteriorate further if the prices fail to get back above the 1.25 barrier in the short term.
USDJPY continues to edge lower on Thursday after a rejection from this week’s highs around 107.60. The pair got back below the 107.00 handle. down to 106.70. If this level withstands the selling pressure, a bounce could be expected. On the negative side, the dollar remains well below the key moving averages while the daily RSI continues to point downwards, suggesting the pair will likely stay on the defensive, at least in the immediate term. On the upside, the initial target for bulls arrives at 107.00.
USDCAD is little changed on the day during the European hours. The pair remains stuck between the 100- and 200-DMAs on the daily charts, clinging to the lower end of the range. The intraday support arrives at 1.3520 while on the upside, the 0.36 handle acts as the key local hurdle for bulls. On the weekly timeframes, the dollar remains bearish as long as the prices stay below 1.39. On the other hand, there is a significant support in the form of the 100-weekly MA that comes marginally above 1.33. as long as the prices stay above this level, bearish risks are limited.
The cross sees the largest gain in two weeks on Thursday, having exceeded the 0.90 handle once again. However, the pair is yet to confirm the breakout on a daily closing basis. At the time of writing, the euro was flirting with the mentioned psychological mark, showing signs of waning upside momentum. It a downside correction takes place, the price will first derive support around 1.8970 and then will target the 1.8950 area. On the four-hour timeframes, the technical picture looks more upbeat, with the prices staying well above the 50- and 100-SMAs that converge around 0.8950, giving the additional significance to this support area.
Leave Your Opinion