EURUSD consolidates its recent gains after a short-lived bearish correction witnessed on Tuesday. The bullish trend remains intact and will likely persist in the days to come as bearish attempts are being capped by the 1.17 handle that now acts as the immediate significant support. Once above the 1.1780 two-year highs, the common currency could make a decisive break above the 1.18 barrier and turn this level into resistance. Should traders proceed to profit-taking, a correction below 1.17 will open the way to the 1.1650 intermediate support.
GBPUSD climbed to fresh March highs on Wednesday, extending the rally amid widespread dollar weakness. The pair rose to the 1.2985 area, and now the 1.30 handle comes into market focus. This level, once/if reached, could cause a pullback amid profit-taking. However, as the daily RSI hasn’t yet entered the overbought territory, with the pair being above the key moving averages, the path of least resistance remains to the upside. The immediate support now arrives at 1.29 where the 200-DMA lies. Once below it, the prices will target the 100-DMA in the 1.2745 area.
USDJPY dipped to fresh March lows around 104.80 earlier in the day but managed to trim intraday losses recently. The pair is clinging to the 105.00 figure which is the key in the short term. A daily close below this level will be dollar-negative and could open the way to further losses despite oversold conditions. From a wider perspective, the pair needs to get back above the 20-DMA around 106.80 in order to shrug off the selling pressure. So far, it looks like the greenback is ready to stay on the defensive at least in the short term.
USDCHF plunged to fresh five-year lows around 0.9140 today. The pair managed to bounce since then but remains vulnerable, struggling to regain the 0.92 handle that acts as the immediate target for bulls. The daily RSI shows a modest bearish bias in the oversold territory. Despite this, downside risks for the dollar continue to persist, with fresh long-term lows could be in sight. On the four-hour timeframes, the technical picture looks more positive, with the RSI making recovery attempts. Should the dollar fail to cling to the 0.9170 area, the 0.91 support will come into market focus.
The cross remained depressed on Wednesday and dipped to over one-week lows below mid-0.9000s in recent trading. This level now acts as the immediate key support, a break below which will bring more losses in the short term. On the other hand, the daily RSI looks neutral and doesn’t show any clear bearish signals, suggesting downside risks for the euro being limited at this stage. Besides, the mentioned psychological support is strengthened by the 50-DMA that should trigger a bounce. In case of a recovery, EURGBP will target the 0.9085 intermediate resistance that capped bullish attempts earlier in the day.