It looks like the euro may need the additional catalyst to make a decisive break above the 1.1900 important hurdle
EURUSD has settled within a tight trading range, extending its consolidation ahead of the weekend. The euro was once again rejected from the 1.1890 barrier, with the 1.900 handle continues to act as the key obstacle for bulls. As the pair was rejected from this area several times already, it looks like the common currency may need the additional catalyst to make a decisive break above the important hurdle. Furthermore, the longer the prices stay below 1.1900, the lower are the chances for a breakout. The daily RSI, meanwhile, is getting flat in the neutral territory, suggesting EURUSD could stay directionless before deciding on further bias. On the downside, the immediate support is represented by intraday lows in the 1.1850 area.
GBPUSD remains nearly unchanged since Wednesday, having settled around 1.3270 following failed attempts to break above the 1.33 barrier earlier this week. If the cable manages to hold above 1.32 in the short term, the pair may proceed to another bull run after the current consolidation. Otherwise, the 20-DMA around 1.3120 will come back into market focus. On the four-hour charts, the pound derives support from the ascending 20-SMA, suggesting the downside potential is limited in the short term. Meanwhile, the RSI on the same timeframes is starting to point slightly lower, which implies that the prices could struggle to challenge the mentioned 1.33 handle in the immediate term.
USDJPY is marginally higher on the day but still below the 104.00 figure that now represents the immediate resistance. The dollar has bounced from March lows just above 103.00 registered nearly two-weeks ago. However, the prices lack the bullish impetus to stage a more decisive and robust recovery while attracting sellers on bullish attempts. Such dynamics may signal that the greenback is not ready for a decisive reversal and could resume the decline following the current consolidation. In this scenario, the 103.70-103.65 support zone will come back into market focus as a break below this area would pave the way towards 103.15.
The Kiwi extended gains to fresh two-year highs in the 0.6950 area on Friday. As such, the pair continues to near the 0.7000 hurdle last seen in mid-2018. The New Zealand dollar remains well above the ascending 20- and 100-DMAs while retaining a bullish tone. However, the daily RSI gas entered the overbought territory, suggesting the pair may struggle to extend the rally and overcome the 0.6950 immediate resistance. If so, a downside correction should be expected, with the nearest support arriving at 0.6920. However, on the four-hour charts, there are some positive technical signals pointing to a potential bullish extension in the immediate term.
USDCAD is flirting with the 1.3050 local support area, a break below which could pave the way towards the 1.3000 figure last seen last week. The pair’s bullishness is still being capped by the descending 20-DMA, suggesting the least path of resistance is to the downside while the daily RSI is pointing slightly lower, adding to bearish signs in the short term. Furthermore, the prices have settled below the key simple moving averages on the hourly charts, also pointing to lingering bearish risks. A recovery above the 20-DMA (today at 1.3130) could help USDCAD to shrug off the current weakness at least partially. Until then, downside risks will continue to persist.