EURUSD shows a bearish bias for the third day in a row on Friday. Following failed attempts to break above the 1.1240 local resistance, the euro came under renewed selling pressure and has settled around the 1.12 handle. As long as the pair stays close to this level, the pair’s dynamics is considered as directionless. On the weekly timeframes, the common currency could finish in the positive territory if 1.12 withstands the bearish pressure on a daily closing basis.
After flat dynamics seen yesterday, GBPUSD resumed the decline and confirmed a break below the 50-DMA on Friday. As a result, the pair dipped to a four-day low of 1.2356 and remains under pressure. Pound could challenge fresh lows around 1.2335 in the near term, especially after a break below the mentioned moving average that turned into resistance. On the four-hour timeframes, the technical picture looks bearish as well, with cable trading below horizontal the 200-SMA that arrives around 1.2420. The pair now needs to get back above the 1.24 handle so that stage a bullish correction in the short term.
USDJPY turned into a recovery mode after a brief dip to the 106.80 area earlier in the day. As a result, the pair reversed intraday losses, creating a long lower ick in the daily charts. Still, the dollar refrains from a more robust correction, staying shy of mid-June highs registered around 107.45 yesterday. Marginally above this level, the 20-DMA lies, capping the upside potential in the pair. In the near term, the prices may turn negative again and get back below 107.00 if the greenback refrains from challenging intraday highs around 107.25.
USDCAD climbed to nearly two-week highs around 1.3680 on Friday, extending its pullback from the 200-DMA for a fourth consecutive day. In a wider picture, the pair remains stuck between the 100- and 200-DMAs since early-June and a breakthrough in either direction will define further bias for the greenback. On the four-hour timeframes, the technical picture looks bullish, with the RSI is yet to enter the overbought territory, suggesting further gains could lie ahead in the immediate term. If so, the pair could revisit the 1.37 figure for the first time since June 1.
The cross remains in a tight range, struggling for direction this week. Earlier in the day, the euro briefly dipped to 119.80 for the first time since Monday and bounced shortly. As a result, a long wick was created on the daily timeframes, suggesting the downside potential is limited, and the pair will likely remain in a consolidative range at least in the near term. EURJPY recovered above 120.00 but retains a negative bias. On the upside, the pair needs to overcome the 120.30 resistance so that to retarget the 121.00 handle that attracted sellers earlier this week.