EURUSD
EURUSD has been on the defensive since its rejection from one-week highs around 1.1350 witnessed yesterday. On Wednesday, the euro derives support from the 1.1270 after another failed attempt to turn the 1.13 level into support. On the weekly charts, the common currency remains buoyed as long as the pair stays above the 50-SMA while the 200-SMA continues to act as a significant resistance around 1.1330. On the downside, the bearish potential is limited as long as EURUSD stays above the 1.12 important hurdle.
GBPUSD
GBPUSD finished above 1.25 on Tuesday but failed to retain its bullish tone and turned red today. The pair has settled marginally below this key level, oscillating around the 100-DMA. On the other hand, the pound stays above the 50-DMA, suggesting the downside risks are limited as long as this moving average acts as support. On the upside, a recovery above 1.25 will shift market focus to 1.2575. However, at this stage, it looks like the path of least resistance is to the downside. On the four-hour timeframes, the cable has settled below the 50-SMA which is another bearish sign for the short-term technical outlook.
USDJPY
USDJPY is trading marginally higher on Wednesday after yesterday’s brief dip to early-May lows marginally above the 106.00 handle. Today, the dollar encountered local resistance around 106.75, a break above which will open the wat towards 107.00. As long as the prices stay below this level, downside risks will likely persist in the short term. On the other hand, a long lower wick crated on the daily timeframes yesterday suggests that the bearish potential is limited at the moment. In the four-hour charts, USDJPY needs to make a decisive break above the 20-SMA so that to extend the recovery in the immediate term.
NZDUSD
The Kiwi has been declining since the start of the day after the upbeat tone witnessed during the last two days. The pair failed to confirm a break above 0.65 and switched into a corrective mode on Wednesday. So far, the prices manage to hold above the 0.64 intermediate support as a break under this level could bring the 200-DMA back into market focus. On the weekly timeframes, however, the New Zealand dollar remains in the green so far, after two weeks of losses. Now, the pair is stuck between the 100- and 50-weekly moving averages.
USDCAD
USDCAD bounced from the 200-DMA below 1.35 yesterday and has been trending higher since then. The pair extended the recovery to the levels just below the 1.36 handle on Wednesday that acts as the immediate resistance. Despite the dollar regained the upside bias, it is yet to recoup losses witnessed at the start of the week. If the prices manage to climb above the mentioned intraday highs, the 1.3620-1.3630 resistance area will come back into market focus. In a wider picture, the greenback needs to overcome the 100-DMA around 1.3780. The pair has been trading below this moving average since early-June. On the downside, the technical picture will deteriorate if the pair fails to hold above the 200-DMA.
