EURUSD keeps bleeding on Thursday, having derailed the 1.12 handle earlier in the day. Despite the pair bounced back above this level afterwards, the latest movements point to growing downside risks as the euro extends its bearish correction from local highs around 1.1350 registered earlier this week. If the common currency dips under 1.12 on a daily closing basis, the next support around 1.1170 will come back into market focus. On the positive side, the pair is still well above the key moving averages that arrive in the 1.1000-1.1030 region.
GBPUSD is little changed on Thursday, struggling for direction after a decent decline witnessed yesterday. The pair turned slightly positive on the day recently but failed to regain a more robust recovery impetus and is now stuck between the 50- and 100-DMAs, clinging to the former. The daily RSI looks neutral as well, suggesting the pound could spend some time in a consolidative mode before deciding on further direction. On the weekly charts, the pair remains positive despite yesterday’s plunge but the fact the prices are below the key moving averages suggests the bullish potential is limited in the medium term.
USDJPY has been on the rise for a second day in a row on Thursday. The pair climbed to two-week highs around 107.45 and retreated slightly afterwards. Still, the dollar remains above the 107.00 handle that acts as the key immediate support. If the buying pressure persists in the short term, the greenback could challenge the 20-DMA at 107.50. However, downside risks continue to persist as long as the pair stays below at least the 100-DMA around 108.00. As the daily RSI is pointing upwards, there is a possibility that the prices will extend the ascent in the near term.
USDCHF extends the recovery from two-week lows registered around 0.9420 earlier this week. As a result of a bounce, the dollar climbed back to 0.95. However, further upside looks limited at the moment, with the pair remaining neutral on the weekly charts. The daily RSI is pointing upwards but the bias is too modest to expect a more robust ascent, at least in the immediate term. A daily close above 0.95 will act as a confirmation of the latest breakout and could open the way to the 0.9530 resistance area that may cap the current bullish potential in the pair.
The cross turned negative on Thursday after failed attempts to overcome the 0.91 resistance earlier this week. Despite the retreat, the pair remains not far from three-month highs, and it looks like the euro could resume the ascent after a short-term correction. EURJPY dipped to fresh weekly lows earlier in the day but managed to bounce as the 0.90 handle acted as the immediate support. If this level withstands the bearish pressure in the near term, the upside momentum could reemerge and bring the mentioned highs back into market focus. On the four-hour timeframes, a long lower wick was created recently, suggesting the downside potential is limited.
Leave Your Opinion