USDJPY could spend some time in a consolidative mode before deciding on the further direction
EURUSD failed to retain a bullish tone and corrected lower from nearly two-month highs registered earlier in the day around 1.1940. The pair slipped to the 1.1900 figure which remains in market focus. If the euro manages to hold above this mark on a daily closing basis, another bull run could be expected in the short term. However, thin trading conditions due to Thanksgiving Day in the United States may cap fresh upside attempts. In a wider picture, EURUSD remains within the uneven bullish trend, retaining positive momentum as long as the prices stay above the ascending 100-DMA, today at 1.1760. In the immediate term, the European currency needs to hold above the ascending 20-SMA on the four-hour timeframes in order to avoid a deeper retreat.
GBPUSD turned marginally lower on Thursday following four consecutive bullish sessions. The pair has faced the 1.3400 barrier, struggling to overcome this significant resistance despite upbeat expectations surrounding Brexit talks and the persisting weakness in dollar demand. On the other hand, the selling pressure looks limited as well, with the prices keep holding above 1.3340 today. More significant support arrives around 1.3300. As long as the prices stay above this figure, downside risks are limited. On the hourly charts, the cable is flirting with the 100-SMA that acts as the immediate support. Once below this moving average, GBPUSD could retarget 1.3300.
USDJPY remains capped by the 20-DMA, today at 104.45. A break above this moving average could pave the way to the 104.75 intermediate barrier on the way to 105.00. At this stage, downside risks continue to prevail in the short term as the greenback struggled to retain a bullish tone following a strong rally witnessed at the start of the week. On the other hand, the daily RSI is directionless in the neutral territory, suggesting the pair could spend some time in a consolidative mode before deciding on the further direction. On the downside, a break below 104.00 will bring the market focus back to recent lows in the 103.70-103.65 area.
USDCAD is flat on the day after modest bullish attempts seen yesterday. The pair is clinging to the 1.3000 figure, struggling for a short-term direction. In a wider picture, however, the US currency remains on the defensive while below the descending 20-DMA that arrives marginally below 1.3100. At the same time, the flat daily RSI points to further consolidation in the short term. On the hourly charts, the pair has climbed above the 20-SMA which is a slightly positive technical signal. Still, it’s not enough to bet on fresh recovery attempts any time soon, though the prices are off lows in the 1.2930 area registered earlier this month.
The cross remains below the 200-DMA since the start of the week despite the prevailing bullish bias on the daily charts. As of writing, the pair was changing hands marginally above 0.8900, off yesterday’s highs in the 0.8940 region. A daily close above this figure could signal some improvement in the short-term technical picture for the euro. Still, downside risks continue to persist as long as the prices stay 0.8955 where the 20-and 20-DMAs converge representing the immediate significant resistance. The last time the cross was holding firmly above the 20-daily moving average was in late-September. On the downside, the immediate support arrives at 0.8885.