EURUSD was rejected from the 1.13 handle reached earlier in the day. As a result, the common currency retreated to the flat-line around 1.1250. However, a long upper wick on the daily timeframes signals a limited nature of the local downside pressure. So, the pair will likely resume the ascent after the current consolidation. On the other hand, it looks like the euro may need the additional catalyst in order to make a decisive break above the 1.13 barrier on a daily closing basis, especially as the daily RSI remains flat for over a week already.
GBPUSD extended its rally to 1.2530 today but failed to retain its bullish impetus and has retreated below 1.25 since then, threatening to enter the negative territory on the daily timeframes. However, as long as the cable derives support from the 100-DMA, bearish risks remain limited, with the path of least resistance being to the upside. Furthermore, there is another decent support in the form of the 50-DMA. Only a decisive break below both moving averages will put an end to the current ascent. So, it looks like the pair is ready to resume the bullish movement after a pause.
USDJPY turned slightly positive on Thursday but remains well off reversing yesterday’s losses. The fact that bullish attempts above 108.00 attracted profit-taking may signal the impending downside correction following decent gains that had been witnessed since June 24. The daily RSI turned slightly positive but the bias is too modest to expect a more robust recovery following ab abrupt and aggressive sell-off. On the downside, the 20-DMA continues to act as the immediate support. The greenback needs to hold above this moving average to avoid more losses in the short term.
NZDUSD extends gains for the fourth day in a row, having accelerated the ascent on Thursday. The Kiwi climbed to three-week highs today and stays elevated above the 0.65 figure that is significant on a daily closing basis. If the New Zealand dollar confirms that this level turned into support, the rally could be extended further. In this scenario, market focus will shift towards the 0.6585 region that capped the upside momentum last month. However, the RSI in the hourly charts has entered the overbought territory and corrects lower, suggesting the upside impetus could be exhausted soon. In case of a bearish correction, NZDUSD may threaten the 0.65 handle by the end of the day.
The cross is little changed on Thursday, consolidating marginally above the 0.90 handle after two days of steep losses witnessed following a rejection from three-month highs registered around 0.9175 earlier this week. It looks like the selling pressure surrounding the euro is easing now, with the daily RSI turning flat, suggesting a bounce could be expected after the current directional movements in the short term. The pair needs to hold above 0.90 so that to avoid another sell-off in the days to come. Otherwise, the prices could retarget the 0.8950 area. On the upside, the immediate resistance now arrives around 0.9055. A decisive break above this barrier could serve as a recovery confirmation.