USDCAD slipped to the lowest levels since September 2018 below 1.2850
EURUSD refreshed April 2018 highs marginally below 1.2200 after a short-term downside correction attracted demand and sent the common currency to new peaks. The fact that buyers reemerged at bearish attempts confirms the strength of the ongoing bullish trend. The daily RSI is pointing north in the overbought territory, suggesting the euro could face some resistance in the 1.2200 area if the upside pressure persists in the short-term. On the four-hour charts, EURUSD is holding firmly above the ascending 20-SMA, with the immediate support now arrives at 1.2130, followed by 1.2100 where the mentioned moving average arrives. On the upside, a break above 1.2200 could pave the way towards the 1.2230 area.
GBPUSD retains its bullish bias, holding above the ascending 20-DMA on Friday. Despite the persisting upside momentum, the dollar refrains from challenging the 1.3500 barrier while changing hands just around this level. Considering that the daily RSI is yet to enter the overbought territory, it looks like the pound could make another bull run in the short term, however, a decisive break above this hurdle at the first attempt will hardly take place. The last time the pair touched this level was in December 2019 when the prices were rejected from peaks and plunged to 1.1400 during the global sell-off seen in March. If the rejection scenario repeats itself, the cable could turn into a corrective mode, with the initial support arriving at 1.3460.
USDJPY bounced from the 103.70 area and proceeded to recovery on Friday after a steep sell-off seen yesterday. The pair managed to erase losses to the 104.00 level that acted as a local resistance earlier in the day and capped further gains. As the overall sentiment surrounding the greenback remains bearish, it looks like the recovery potential will remain limited in the short term. a more significant resistance arrives at 104.40 where the 20-DMA lies. As long as the dollar stays below this moving average, near-term bearish risks continue to dominate the market. On the downside, a break below the mentioned lows could pave the way towards 103.50.
The Kiwi turned marginally lower on Friday following the recent rejection from April 2018 highs registered around 0.7100 on Thursday. Still, the pair refrains from a more pronounced bearish correction, suggesting the New Zealand dollar could resume the rally after a short-lived breath. Meanwhile, the daily RSI has corrected from the overbought territory and pointing south, which implies some extension of the retreat before another bull run takes place. In the four-hour timeframes, NZDUSD has dipped under the ascending 20-SMA, suggesting the pair could slip to 0.7130 and then to the 0.7100 handle during the current correction.
USDCAD slipped to the lowest levels since September 2018 below 1.2850 earlier in the day. The pair continued to trade in a tight intraday range at the time of writing, refraining both from deeper losses and recovery attempts. The downside momentum could slow in the near term, as the daily RSI gas entered the oversold territory in recent trading, suggesting a bounce could be expected. Otherwise, the dollar could target the 1.2800 figure next. On the upside, the immediate resistance now arrives at 1.2900, followed by 1.2920. In a wider picture, the upside potential has been capped by the descending 20-DMA for a month already, and it looks like the greenback won’t dare to challenge this moving average (today at 1.3022) any time soon, with downside risks still persisting despite the oversold conditions.