The next resistance for EURUSD could be expected at 1.2185, followed by the 1.2200 barrier
EURUSD rose to fresh April 2018 highs in the 1.2140 area earlier in the day and retained a bullish bias after a short-lived correction. During the recent retreat, the euro derived support from the 20-SMA on the hourly timeframes. The fact that buyers have reentered the game amid a downside correction may signal the pair’s readiness to extend the rally despite the overbought conditions both in the short-term and the daily charts. If so, the next resistance could be expected at 1.2185, followed by the 1.2200 barrier. On the four-hour timeframes, the common currency has been holding firmly above the ascending 20-SMA for over a week already, which implies that the short-term technical picture could stay constructive in the near term.
GBPUSD refreshed three-month highs in the 1.3450 area on Thursday, extending its gradual rally from the levels below the 1.3000 handle last seen in September. During yesterday’s correction, the pair managed to hold above the ascending 20-DMA that has been acting as significant support for nearly a month already. As such, as long as the cable stays above this moving average, upside risks persist. The daily RSI is pointing north and is about to enter the overbought territory for the first time since August. It may be a signal of the impending bearish correction in case of further upside attempts. In other words, the pound could face resistance on the way towards 1.3500, probably around the 1.3480 level that triggered a retreat in late-August.
USDJPY failed to preserve the upside momentum following three days of gains and turned negative on Thursday. The dollar’s decline has accelerated following a break below 104.50. as of writing, the pair was holding marginally above the 104.00 handle that acts as the key immediate support. A break below this level would pave the way towards 103.80. On the negative side, the prices are now back below the 20-DMA, today at 104.40. The pair needs to reclaim this moving average as support in order to shift into я recovery mode again. For now, downside risks prevail in the short-term, especially as the dollar plunged below the key hourly moving averages in recent trading.
XAUUSD has been in recovery mode for the third day in a row. In the process, the precious metal has reclaimed the 200-DMA as support and now targets the 20-DMA, today at $1,850. Once above this moving average, the bullion could regain the $1,860 intermediate resistance. The daily RSI has recovered from the oversold conditions and pointing north, suggesting there is room for further upside at least in the short term. On the other hand, the yellow metal may lack the bullish impetus to overcome the mentioned moving average. In this scenario, the bullion may get back below $1,800 following a rejection from the $1,850 figure.
USDCHF has been bleeding for the third consecutive day, having extended the decline to early-2015 lows marginally above the 0.8900 figure. If this level gives up, the dollar could target the 0.8750 region. At that, the daily RSI is just nearing the oversold territory, suggesting there is still some downside potential ahead. In case of a bounce, the immediate resistance could be expected at 0.8940, followed by 0.9000 where the descending 20-SMA on the four-hour charts arrives. On the negative side, the pair struggles to regain the descending 20-SMA on the hourly charts since the start of this month.