EURUSD struggles to regain the 1.13 handle despite a bullish intraday bias on Wednesday. Yesterday, the prices failed to stage a daily close above this level and look vulnerable to further losses as recovery attempts look too modest at this stage. On the downside, the immediate support arrives around 1.1260. A break below this level could bring more bears to the market and send the common currency to the 1.1220 region. On the four-hour timeframes, the technical picture looks more upbeat as the prices have settled above the 50- and 100-SMAs that turned into support levels earlier this week.
GBPUSD extends gains for the fourth day in a row on Wednesday after a rejection from a significant support level represented by the descending 100-DMA. The pair climbed to intraday highs around 1.2570 but remains shy of yesterday’s top marginally below 1.26. This is the key barrier for bulls now, as a decisive break above it will act as a confirmation of bullish extension in the days to come. On the downside, the pound needs to stay above the 100- and 50-DMAs to retain the current bullish bias. On the weekly timeframes, the 50-SMA could trigger a downside correction in the near term.
The technical picture for USDJPY remains unchanged. The pair is stuck in a tightening range, struggling for direction after another rejection from the 100-DMA witnessed on Tuesday. The longer the dollar remains in a consolidative mode, the higher is the risk of an abrupt price action once the prices make a breakthrough in either direction. As such, traders will likely remain cautious in the short term, especially considering strong resistance and support levels represented by the 100- and 20-DMAs, respectively. A break above the former could send the prices to the 108.00 barrier.
USDCHF made some bullish attempts on Tuesday but was rejected from local highs and created a long upper wick on the daily timeframes as a result, suggesting the upside potential remains limited since last week when the greenback was rejected from local highs above 0.95. So, the least path of resistance is to the downside now. As such, the inability to cling to the current levels could send the prices below 0.94, where the intermediate support arrives around 0.9385. On the upside, USDCHF needs to make a decisive break above the 0.9455 local resistance in order to retarget the 0.95 mentioned barrier.
The cross is marginally higher on Wednesday, struggling to regain the upside momentum following an aggressive sell-off witnessed yesterday. The euro has settled around the 0.90 figure, a decisive break above which is needed for a more vivid and robust recovery. At this stage, downside risks persist despite a mild bullish bias on the daily timeframes. The daily RSI turned flat, suggesting the pair may extend the current consolidation for some time before it decides on the further direction. On the upside, the key resistance levels arrive around 0.9050 and 0.9070, respectively.
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