Once above 106.10, USDJPY could retest the 106.30 intermediate resistance
EURUSD is flat in a tiny trading range, struggling for direction amid a stable dollar. The pair is stuck around 1.1760, awaiting the catalyst that could push the euro in either direction. On the weekly timeframes, however, EURUSD stays positive for the second week in a row while holding above the key weekly moving averages. As the RSI in the same charts points north and hasn’t entered the overbought territory just yet, the path of least resistance is to the upside. If so, once the 1.1780 turns into support, the 1.18 handle will come back into market focus. However, the common currency may need the additional catalyst to overcome this hurdle in the short term.
GBPUSD continues to trade in a tightening range, showing a marginal bearish bias after small gains seen yesterday. On the upside, the cable needs to clear the 1.2970 resistance to retarget the 1.30 psychological level. However, the daily RSI remains flat in the neutral territory, suggesting the current consolidation could continue before a breakout/breakdown takes place. On the downside, the 20-, 100-, and 200-DMAs continue to act as support levels. As long as the priced stay above these moving averages, chances for a bullish breakthrough remain high. In the shorter-term timeframes, the pound needs to clear the 20-SMA to turn positive on the daily charts.
USDJPY has been capped by the 106.10 intermediate resistance since yesterday. After another rejection, the dollar has been clinging to the 106.00 level, preserving a modest bullish bias on the intraday charts, which implies that further bullish attempts could be expected in the short term. On the positive side, the pair has settled above the important 20-DMA that has been acting as support around 105.40 for the last three days. On the four-hour charts, the prices have settled above the three key moving averages, holding above the 105.90 figure. In the short term, the greenback could continue its consolidation before another bullish attack. Once above 106.10, the prices could retest the 106.30 intermediate resistance.
The Kiwi briefly dipped to 1.5-week lows during the Asian hours and challenged the 100-DMA in the process. However, the pair managed to bounce quickly and turned positive on the day. As a result, a long lower wick was created on the intraday timeframes, suggesting downside risks are limited at this stage. NZDUSD climbed to intraday highs just below the 0.66 handle but failed to challenge the psychological level and retreated partially in recent trading. The daily RSI shows only a marginal upside bias, which implies some consolidation could take place in the short term before the pair decides on the further direction. On the four-hour timeframes, the New Zealand dollar has been trading below the descending 20-SMA since Tuesday, suggesting the recovery momentum could be sluggish in the immediate term.
On Thursday, USDCAD extended the retreat from October highs registered around 1.3340 yesterday. The short-term technical picture has deteriorated after the dollar got back below the 20-DMA. As a result, the prices dipped to the lowest level since September 21 at 1.3228. As of writing, the pair was slightly off the lows but still clinging to the lower end of the intraday range. On the hourly charts, USDCAD has been following the descending 20-SMA that now acts as the immediate resistance. As long as the prices stay below this moving average, bearish risks persist. On the downside, a break below the mentioned 2.5-week lows will pave the way toward the 1.32 handle, followed by 1.3160.