The rebound in the greenback was short-lived, and the pressure seems to be reemerging
EURUSD is little changed on Thursday after a retreat toward the 1.18 region earlier in the day. The euro came under the selling pressure after the Federal Reserve revealed its latest policy meeting minutes as the document triggered a local rally in the greenback. However, the recovery was short-lived, and the pressure seems to be reemerging today. The euro bounced from the 1.1812 level and turned marginally higher on the day in recent trading. The common currency was supported by the account of the ECB July 2020 monetary policy meeting. The central bank sounded more upbeat compared to the Fed, so the euro could extend the recovery and resume the rally toward fresh long-term highs eventually. The intermediate resistance arrives at 1.1870. A break above this level will open the way to 1.19.
GBPUSD was rejected from fresh highs around 1.3270 yesterday and plunged to below the 1.31 handle, extending losses to the 1.3065 support zone. The pair bounced from this intraday low during the European hours and regained the 1.13 handle as a result. As of writing, the cable was changing hands around 1.3145, up 0.37% on the day. If the recovery momentum persists in the short term, the prices could retarget the 1.32 barrier before the end of the day. On the four-hour timeframes, the technical picture has improved after the pound climbed back above the 100- and 50-SMAs while the RSI has reversed higher, suggesting the pair will at least manage to hold above 1.31 in the near term.
USDJPY is back under the selling pressure after a short-lived recovery witnessed on Wednesday. Today, the pair tried to extend the bounce but was capped by the 106.20 intermediate resistance. As a result, the price retreated to the 20-DMA which is the key for further short-term direction. A daily close below this moving average that arrives at 106.85 will reinforce the bearish bias. The daily RSI with its downside bias signals the reemerging downside momentum. On the other hand, as long as the dollar remains above the 105.00 figure, bearish risks are limited.
AUDUSD extends the decline from yesterday but the downside momentum has slowed, signaling its readiness to resume the ascent once the dollar comes under the renewed selling pressure. The prices peaked at 0.7275 on Wednesday and could challenge the 0.73 handle in the days to come if the Aussie manages to shrug-off the current short-term weakness. On the weekly charts, the technical picture remains bullish but the 200-SMA around 0.7230 could prevent the prices from another rally. Now, the immediate resistance arrives at 1.72. The longer the pair stays below this level, the higher is the risk of a deeper correction amid the potential profit-taking at still attractive levels.
EURGBP briefly jumped to four-day highs around 0.9070 earlier in the day but retreated aggressively from local tops as the bears reemerged on the way toward 0.91. As a result, the cross plunged to 0.90. This level has been acting as support for a week already and could trigger a bounce if the selling pressure doesn’t intensify any time soon. The daily RSI is pointing slightly lower in the neutral territory, suggesting the pair could remain on the defensive in the short term. At this stage, the common currency needs to regain the 50-DMA around 0.9030 in order to retarget the mentioned local highs. On the four-hour charts, the prices are yet to regain the key moving averages to shrug off the current weakness.