EURUSD challenged the 1.19 barrier earlier in the day but failed to confirm another breakout and retreated to the negative territory. Despite the correction and strong overbought signals, the common currency retains a broader bullish tone, with the upside trend remaining intact, at least at this stage. At the same time, the pair may need a deeper pullback to attract fresh buyers that would make another bullish attempt at 1.19. On the downside, the immediate support arrives at 1.1830. A break below this level will open the way towards 1.18.
GBPUSD extends the rally, having climbed to fresh March highs on Friday. The pound confirmed a break above the 1.31 figure that has turned into support as a result and rose to 1.3144. At the time of writing, the pair was changing hands close to the top of the extended bullish range despite the daily RSI is strongly overbought. It looks like GBPUSD will continue the ascent in the short term and could target the 1.32 barrier next, where a local reversal may take place that will attract more profit-taking. On the hourly charts, there are some signs of a weakening upside momentum, however, suggesting a top could be made soon.
USDJPY extended losses to the 104.20 region earlier in the day as the dollar came under renewed selling pressure across the board. However, the pressure has eased somehow since then, and the pair bounced as a result. USDJPY has settled above the opening levels, and it looks like the bulls are ready to take the prices above 105.00. Still, even a daily close above this handle won’t change the bearish technical picture much. On the four-hour timeframes, the pair has climbed to the 20-SMA which is the key for dollar buyers in the immediate term.
USDCHF briefly dipped to fresh five-year lows around 0.9055 earlier in the day where the dollar found support and bounced. Now, the pair has settled around the 0.91 handle, a break above which is key for a recovery in the short term. As long as the prices stay below this level, the immediate downside risks persist. On the four-hour timeframes, the RSI has reversed north in recent trading, which implies a potential retest of the mentioned psychological level. However, on the daily charts, the greenback is well below the descending 50-SMA, which is a bearish sign.
USDCAD is trying to extend yesterday’s rally but the momentum looks too limited as the pair is changing hands marginally above the opening levels on Friday. The prices encountered resistance around 1.3460 on Thursday and were rejected from this region, struggling to stage a more decisive recovery from the recent slump. Furthermore, the dollar has settled below the 200-DMA since last Tuesday. This moving average that now arrives at 1.3520 acts as the key hurdle for bulls. On the downside, the key immediate support comes in the 1.3330 region. So far, this level caps downside attempts in the pair.
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