USDCAD rallies amid a combination of a stronger dollar and lower oil prices
EURUSD
EURUSD came under renewed selling pressure on Thursday amid a widespread risk aversion that fueled the safe-haven dollar demand across the market. The pair dipped to October lows around 1.1690 and remained below 1.17 as of writing. The fact that the euro derailed the 1.17 important support implies that the pair could see further losses ahead. The daily RSI is pointing south in the neutral territory, suggesting there is still more room to the downside. On the four-hour charts, the technical picture has deteriorated after a decisive break below the 100-SMA that turned into resistance as a result. In a wider picture, however, EURUSD remains buoyed as long as the prices stay above the ascending 20-week SMA.
Similarly, the cable has reversed yesterday’s gains and began flirting with the 20-DMA in recent trading. The pair failed to hold above the 1.30 handle earlier this week and came under pressure amid broad-based demand for the greenback. Now, the pound needs to hold above the mentioned moving average that arrives around 1.2890. Otherwise, the 100- and 200-DMAs will come into market focus. A daily close below the 1.29 figure would be a confirmation of the latest breakdown while the immediate support arrives at 1.2830 where the 100-DMA lies. The daily RSI is trending south in the neutral territory, suggesting GBPUSD will at least stay under downside pressure in the short term.
USDJPY
USDJPY bounced from lows around 105.00 and turned positive on the day. Still, the pair struggles to overcome the 20-DMA that turned back into resistance earlier this week. Despite the bullish bias, it looks like the upside potential is limited, with bearish risks persisting in the short- to medium term. If the greenback fails to regain the mentioned moving average, the prices could retreat and challenge the 105.00 support. Once below this level, USDJPY could target the 104.70 area. On the four-hour timeframes, the pair continues to follow the descending 20-SMA, which implies that the pair will likely struggle to stage a more robust ascent in the immediate term.
USDCAD
USDCAD rallied on Thursday amid a combination of a stronger dollar and lower oil prices. The pair has been rising for the third day in a row, having accelerated the ascent today. As a result, the prices extended gains to one-week highs around 1.3240. If the dollar manages to preserve the current bullish impetus in the short term, the pair could target the 20-DMA, at 1.3270 today. On the downside, the immediate support now arrives at 1.3190. a daily close above 1.32 would be a confirmation of the latest breakout, with the ascending daily RSI pointing to further gains. The technical picture has improved on the four-hour timeframes as well after the greenback regained the 200-SMA for the first time in a week.
AUDUSD plunged dramatically today, dragged down by widespread risk aversion and profit-taking in the oil market. The pair slipped to late-September lows around 0.7055 and bounced slightly in recent trading. The Australian currency has been losing ground since the start of the week, and it looks like the downside pressure could persist in the short term as the descending daily RSI is yet to enter the oversold territory, suggesting there is still more room to the downside. As of writing, AUDUSD was changing hands around 0.7080, struggling to recover above the 0.71 handle. Should the pressure intensify, the 0.70 key support zone will come back into the market focus for the first time since September 25.
