EURUSD is marginally positive on Friday but still struggles to regain the 1.13 handle. earlier in the day, the euro slipped to the 1.1250 support zone and saw a modest bounce afterwards. Despite the recovery, the euro still looks vulnerable after yesterday’s rejection from the intermediate resistance around 1.1370 that capped the ascent towards the 1.14 handle. On the four-hour timeframes, the prices bounced from the 100- and 50-SMAs which could be a sign of a modest improvement in the short-term technical picture. Still, EURUSD needs to firmly regain the 1.13 level in order to extend the recovery.
GBPUSD turned marginally higher on the day and regained the 1.26 handle after a brief dip to 1.2570 earlier in the day. Despite a bounce, the pair remains vulnerable, with downside risks persisting as long as the prices stay below the 200-DMA. This moving average capped yesterday’s bullish attempts and triggered a downside correction. However, a daily close above the 1.26 handle will act as a signal of the easing selling pressure in the short term. in a wider picture, the pound is finishing the second bullish week in a row, extending its gradual and uneven recovery from the lows around 1.14 registered in March.
USDJPY has finally exited the familiar range in an abrupt downward movement that took the dollar below the 107.00 figure. The pair dipped to nearly two-week lows around 106.70 and staying close to the lower end of the range, suggesting further losses could lie ahead. To prevent a more aggressive selling pressure, the greenback needs to make a strong comeback above at least the 107.00 level in the short term. Now, as the 20-DMA has turned into resistance, the recovery path will likely be hard and uneven. On the hourly charts, USDJPY bounced slightly but remains well below the key moving averages.
The cross encountered the 122.00 barrier once again yesterday and retreated as a result of local profit-taking. The selling pressure has intensified on Friday, and the prices dipped to 120.25 not seen since early July. This is significant intermediate support, so a break below it could bring a more intense downside pressure in the short term. However, it looks like the bearish potential is limited at the moment, especially as the pair has already trimmed intraday losses. Now, the immediate resistance arrives at the 121.00 level. A recovery above this handle will bring the mentioned 122.00 barrier back into market focus.
USDCHF briefly plunged to four-month lows around 0.9360 on Thursday but managed to bounce quickly and finished in the green. Today, the pair extended the recovery to 0.9430. Since then, the prices retreated partially, clinging to the 0.94 handle during the European hours. Despite the recovery, the overall technical picture on the daily timeframes suggests the upside potential is limited at this stage while bearish risks continue to persist as the greenback remains fragile. On the four-hour timeframes, the immediate resistance arrives at the mentioned intraday highs where the 50-SMA lies. A decisive rebound above this level is necessary for a bullish extension in the short term.