USDJPY climbed to fresh two-week highs around the 105.80 figure
EURUSD failed to challenge the 1.1750 intermediate resistance and came under renewed selling pressure after a two-day recovery that was capped by the 20-DMA. This moving average acts as the immediate hurdle for bulls, and the longer the pair stays below it, the higher is the risk of another retreat toward 1.16. If the common currency manages to hold above this support in the days to come, the renewed ascent could be expected. In this scenario, the pair may retarget the 1.20 handle after some hesitation. In the immediate term, EURUSD will likely stay under the selling pressure as the daily RSI is pointing to the downside in the neutral territory.
GBPUSD remains capped by the 20-DMA, trading in the red territory as previous bullish attempts have faded just below this moving average that has been acting as resistance for three weeks already. The fact that the pound refrains from a more robust recovery suggests the downside risks continue to persist despite the recent bounce. On the four-hour timeframes, the pound remains stuck between the 100- and 20-SMAs, lacking directional impetus in the short term. As of writing, GBPUSD was changing hands around 1.2825, slightly below the opening levels, with the immediate resistance coming at 1.2870. In a wide picture, the cable needs to hold above the 100- and 200-DMAs that converge around 1.2750.
USDJPY extends its gradual ascent from lows around 104.00 seen on August 21. The pair climbed to fresh two-week highs around the 105.80 figure, a break above which will pave the way toward 106.00. also on the positive side, the prices have settled above the 20-DMA and look poised for a bullish continuation in the short term, as the daily RSI retains an upward bias in the neutral territory. If the ascent continues, the next strong resistance is expected around 106.30-106.40. This region could spook dollar bulls and trigger a bearish correction. In the immediate term, USDJPY needs to confirm a break above the mentioned 20-DMA.
USDCHF reversed north on Wednesday following a two-day losing streak that took the prices marginally below 0.92. During the recent sell-off, the pair managed to stay above the 20-DMA that arrives around 0.9155, suggesting the downside potential is limited at this stage. The dollar could regain a firmer bullish momentum once above the descending 100-DMA. However, it looks like the pair is not ready to challenge this moving average around 0.9325 last seen in late-May. On the four-hour timeframes, the pair has been staying below the 20-SMA for a month already. This moving average acts as the key immediate resistance for USDCHF at this stage.
The Aussie climbed to one-week highs earlier in the day but failed to preserve the upside momentum and turned slightly negative on the daily charts in recent trading. Despite the retreat, the pair derived support around 0.71 and needs to hold above this level in order to avoid a more aggressive correction following a two-day rally from the 100-DMA that acted as support and triggered a bounce from two-month lows registered late last week. In the immediate term, AUDUSD needs to regain the 20-hour SMA that caps bullish attempts today. Meanwhile, the daily RSI turned flat after the recent surge, suggesting the pair may spend some time in a consolidative mode before deciding on the further direction. In w sider picture, the Australian currency needs to regain the 20-DMA around 0.72 in order to shrug off the recent weakness.