EURUSD retains its bearish bias after rejection from local highs around 1.1250 earlier in the day, having registered more than one-week lows below 1.12. The pair managed to bounce partially since then but remained in the red on the daily timeframes, suggesting the recovery potential remains weak, with bearish risks persisting at this stage. Failure to firmly regain the 1.12 handle could bring deeper losses in the days to come. If so, the 1.1170 support will come back into the market focus. The daily RSI is pointing slightly lower, confirming the prevailing downside momentum.
GBPUSD regained the upside impetus after failed bearish attempts earlier in the day. The cable gradually dipped to 1.2360 but attracted demand at lower levels and bounced, challenging the 50-DMA again. This moving average that lies marginally above the 1.24 handle, will determine the short-term trend in the pair. A daily close above this level will act as a confirmation of the ongoing recovery. Otherwise, fresh losses could lie ahead for sterling that plunged to one-month lows and bounced aggressively on Tuesday. On the weekly timeframes, the pair still looks vulnerable with the technical picture being bearish.
Following failed attempts to break above the 108.00 handle earlier in the day, where three-week highs arrive, USDJPY retreated aggressively as traders preferred to proceed to profit-taking following five days of gains. As a result, the greenback briefly dipped below the 20-DMA and has settled around it since then. This moving average remains in market focus for the time being, acting as the intermediate support on the way towards 107.00. On the upside, the pair needs to make a decisive break above the 100-DMA so that to regain the bullish momentum.
USDCHF turned marginally higher on Wednesday after yesterday’s rejection from mid-June highs around 0.9530. The greenback failed to challenge this local resistance once again and retreated below 0.95. Despite the current bullish bias, the pair remains under this level which is the key immediate hurdle for bulls now. On the four-hour charts, USDCHF is changing hands at a critical short-term level represented by the 50-SMA. The prices need to make a decisive break above this moving average to see a more robust upside momentum. A break above 0.95 will improve the near term technical picture for the dollar.
EURJPY closed above 121.00 for the first time in three weeks yesterday. However, the cross failed to retain the upside momentum and turned negative on Wednesday following two days of gains. The euro encountered resistance on the 121.50 area and plunged to 120.25 in recent trading. The prices managed to recoup some losses since then but remained on the defensive. On the positive side, the pair is trading above the key moving averages that act as support levels. On the weekly timeframes, the common currency bounced from the 50-DMA earlier this month, with bullish bias prevailing since then.
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