USDJPY is licking its wounds around 104.60, struggling to see a more sustained recovery momentum
EURUSD came off more than one-month highs around 1.1880 and dipped to intraday lows in the 1.1810 earlier in the day. The pair managed to trim intraday losses since then but stayed under local pressure. As of writing, the euro was changing hands around 1.1830, down 0.25% on the day. In the short term, the common currency needs to hold above the 1.18 support in order to avoid a deeper bearish correction. Otherwise, the 20-DMA around 1.1750 will come back into market focus. On the upside, a break above the 1.1880 highs will pave the way toward the 1.19 handle. In the immediate term, however, it looks like EURUSD will stay on the defensive.
GBPUSD was rejected from early-September highs around 1.3180 yesterday and was flirting with the 1.31 handle in recent trading. Once below this level, the pair could turn the 1.3060 region into resistance and extend the bearish correction. However, the daily RSI is pointing only slightly lower, suggesting the downside potential could be limited at this stage. Should the pound shrug off the ongoing corrective pressure in the short term, the prices could resume the ascent and get back above the 1.3150 area, with the key upside target arriving at 1.32. On the downside, there are strong support levels in the form of the key moving averages. The 20-DMA (at 1.2943 today) has been acting as support since early-October.
USDJPY is licking its wounds around 104.60 on Thursday, struggling to see a more sustained recovery momentum following a massive plunge witnessed yesterday. The pair dipped to one-month lows around 104.33 and bounced marginally, struggling to get back above the 105.00 handle, with the intermediate resistance coming at 104.80. The daily RSI turned directionless after the decent dip, suggesting the pair could spend some time in consolidation before deciding on a further direction. In a wider picture, USDJPY needs to turn the 20-DMA into support to regain ground further. On the hourly charts, the pair struggles to overcome the 20-SMA while the RSI is pointing south, suggesting the dollar could stay under pressure in the immediate term.
The cross keeps losing ground for the second day in a row, albeit the downside momentum has slowed somehow on Thursday. The pair has dipped below the 20-DMA and could now challenge the 123.50 area where the 100-DMA lies. If the euro fails to hold above this moving average, further losses could be expected. The next support is expected at the 123.00 handle that should withstand the pressure. Otherwise, the prices could extend the decline to late-September lows around 122.40. on the upside, the initial resistance now arrives at the mentioned 20-DMA that lies marginally below 124.00. Once above this figure, EURJPY could target the 124.35 region. However, at this stage, the path of least resistance is to the downside.
The Kiwi retains a bullish tone after a robust rally seen on Wednesday. Still, the pair refrains from challenging the recent peaks around 0.6680 that continue to act as the immediate hurdle for bulls, capping upside attempts for a month already. It looks like the New Zealand dollar may lack bullish momentum to make a decisive break above this barrier any time soon. If so, the pair could see a local reversal and correct lower. In this scenario, the prices will target the 0.6625 area first, followed by the 0.66 handle. On the four-hour timeframes, however, the technical picture remains constructive as long as NZDUSD stays above the key moving averages.
Leave Your Opinion