EURUSD dipped to intraday lows around 1.1260 earlier in the day and has trimmed intraday losses since then, creating a long lower wick. Still, the euro is yet to regain the 1.13 handle in order to resume the ascent that took the prices to the 1.1350 resistance yesterday. This level remains the key hurdle for bulls and triggered pullbacks several times already. So, the common currency may need the additional catalyst to challenge this barrier and confirm a break above this on a daily closing basis. In the immediate term, the pair need to turn the 1.13 handle into support. If so, the mentioned key resistance will come back into market focus.
GBPUSD came under the selling pressure earlier in the day amid a widespread pick up in dollar demand. However, as the pound approached the 1.2460 area, buyers reemerged and pushed the pair to 1.5-week highs around 1.2540. A daily close above the 1.25 barrier will serve as a confirmation of the latest breakout. Otherwise, profit-taking could send the cable back to the 100-DMA in the 1.2440 region. On the four-hour timeframes, the technical picture has improved substantially as the pair has exceeded both the 100- and 200-SMAs in recent trading.
USDJPY remains stuck between the 20- and 100-DMAs. The pair rallied strongly on Tuesday but failed to challenge the 108.00 key barrier that is the key for a bullish extension now. On the downside, the 20-DMA around 107.25 acts as significant support on the way to the 107.00 handle. As long as the dollar stays between the mentioned moving averages, it remains directionless despite short-lived splashes of volatility. On the weekly timeframes, the pair is grinding higher for the third week in a row but the upside impetus looks too modest and unsustainable to bet on further gains in the days to come.
AUDUSD was gradually climbing higher for six consecutive days. On Tuesday, the pair turned negative on the daily charts but the corrective impetus looks limited at this stage. The prices dipped to intraday lows around 0.6920 and have trimmed losses since then. In the short term, the Aussie needs to hold above 0.69 in order to avoid a deeper downside correction should the selling pressure intensify any time soon. On the weekly timeframes, the technical picture has been gradually improving since mid-June, with the pair trading above the 100-weekly moving average.
USDCAD continues to derive support from the 200-DMA. Following three small bearish daily candlesticks, the pair turned positive on Tuesday after a bounce from local lows just below the mentioned moving average that arrives around 1.35. As long as the dollar remains above this level, its short-term dynamics is considered neutral. On the upside, the prices stay below the 100-DMA for over a month already, suggesting the bullish potential is still limited. On the four-hour timeframes, upside attempts are being capped by the 100-SMA. A decisive break above this hurdle will open the way towards the 1.36 handle.