Cable dipped to fresh lows on the day in the 1.3130 area as the greenback was marginally firmer
EURUSD derives support from the 200-hour SMA earlier in the day and shifted into a recovery mode. As a result, the pair turned positive on the day but encountered local resistance in the form of the 100-hour SMA in recent trading. As such, the prices peaked at 1.1822 before easing to the levels just below the 1.18 handle. A daily close above this figure is necessary for a confirmation of a local rebound. Otherwise, downside risks could rise in the short term. In a bearish scenario, the euro could get back under the 20-DMA and threaten the 1.17 level next, where the 100-DMA lies. On the four-hour timeframes, the common currency failed to break above the 20-SMA in recent trading, which could be a sign of the increasing bearish pressure.
The pound broke under the 1.3200 handle and the 100-hour MA earlier in the day, which implies a change in the near-term bias to a more neutral one. The pair dipped to fresh lows on the day in the 1.3130 area as the greenback was marginally firmer amid some shakiness in risk sentiment ahead of the opening bell on Wall Street. Should the downside pressure intensify any time soon, the cable may retarget the 20-DMA around 1.3050 last seen one week ago. As long as the pound stays above the 1.30 figure, bearish risks remain limited. The daily RSI, meanwhile, is pointing slightly lower in the neutral territory, suggesting the path of least resistance now is to the downside.
USDJPY continues to oscillate around the 105.00 handle for the third day in a row, struggling for direction as risk sentiment remains unstable these days. On Thursday, the pair is holding above this level while struggling to overcome the 105.50 intermediate resistance a break above which would pave the way towards the 100-DMA, today at 105.80. As long as the dollar stays below this moving average, the dynamics is considered neutral. On the four-hour timeframes, the prices have been holding above the 20-SMA since Monday, suggesting the downside potential is now limited as well. It looks like USDJPY will spend some time in a consolidative mode before deciding on a further direction.
The Kiwi rose to fresh March highs marginally above the 0.69 handle during the Asian hours and has been retreating since then. As a result, the pair turned negative on the day after an eight-day winning streak. As such, the daily RSI has reversed south from the overbought territory but still remains around the 70 figure, suggesting there is room for a further retreat in the short term. As of writing, NZDUSD was challenging intraday lows around 0.6855, still staying within a broader upside trend that remains intact as long as the New Zealand dollar stays above the 100-DMA, today at 0.6630. On the upside, a decisive break above 0.69 on a daily closing basis could pave the way towards the 0.70 psychological barrier last seen more than two years ago.
The Aussie extends a gradual pullback from mid-September highs registered in the 0.7340 area at the start of the week. During the downside correction, the pair got back under the 0.73 figure and was flirting with the 0.7250 local support zone as of writing. If the prices fail to cling to the current levels and stage a recovery, a break below this support could pave the way towards the 0.7145 region where the 20- and 100-DMAs converge. At the moment, the bearish potential looks limited but it looks like the Australian dollar will stay on the defensive in the near term as the safe-haven dollar demand dominates the markets. On the four-hour charts, the technical picture has deteriorated after the RSI turned lower while the price dipped below the 20-SMA in recent trading.