GBPUSD encountered resistance at 1.3625 and got back below the 1.3600 figure, extending the pullback from fresh highs
EURUSD rose to fresh April 2018 highs in the 1.2270 yesterday and has retreated marginally since then as risk demand started to wane on Friday, fueling demand for the greenback. Despite the correction, the common currency stays elevated, trading just shy of the mentioned long-term tops. As of writing, the pair was changing hands around 1.2250, down 0.18% on the day. On the four-hour timeframes, the prices stay firmly above the ascending 20-SMA, suggesting bearish risks are limited while upside momentum hasn’t been exhausted yet. So, EURUSD will likely resume the ascent after a short-lived correction. In this scenario, the pair could target 1.2300 next.
GBPUSD
In a similar fashion, GBPUSD encountered resistance at 1.3625 and got back below the 1.3600 figure, extending the pullback from fresh highs on Friday. The pair briefly dipped below 1.3500 in recent trading, struggling to regain this immediate barrier during the European hours. Once this level turns into support again, the pound would retarget 1.3600. However, as the daily RSI is pointing south, it looks like a bearish bias will persist in the short term. A broader technical picture remains constructive as long as the cable stays above the ascending 20-DMA, today at 1.3385. On the hourly timeframes, GBPUSD needs to regain the 20-SMA in order to trim intraday losses in the short term.
USDJPY
USDJPY jumped from fresh March lows below the 103.00 figure and has already erased yesterday’s losses. The pair climbed to the 103.60 area while the daily RSI has bounced from the 30 figure and reversed north, suggesting the dollar could extend the recovery in the short term as the Japanese yen is the weakest after a three-day winning streak. However, bearish risks for the pair persist as long as the 20-DMA (today at 104.00) represents resistance. If the 103.60 area gives up any time soon, the next resistance could be expected at the mentioned moving average. On the downside, the immediate support arrives at 103.25, followed by 103.40.
The cross climbed to 127.00 for the first time since late-August and has retreated marginally since then, trading up 0.30% on the day as the yen remains on the back foot versus the euro. Despite the recent rally, the daily RSI hasn’t entered the overbought territory just yet, suggesting there is further room on the upside at least in the short term. Also on the positive side, EURJPY has been holding well above the ascending 20-DMA for nearly a month already. On the downside, the immediate support now arrives at 126.50, followed by 126.30 and 126.00.
AUDUSD
AUDUSD refreshed mid-2018 highs around 0.7640 on Thursday and switched into a correction mode today amid a broad-based recovery in the safe-haven dollar demand. The pair slipped below 0.7600, finding intraday support around 0.7580. Still, the prices have settled below the 20-hourly SMA, suggesting the recovery potential is limited in the short term while downside risks persist for the time being. The daily RSI is correcting lower but hasn’t exited the overbought territory just yet, suggesting further losses could lie ahead. If so, a break below the mentioned support would pave the way toward the 0.7530 area, followed by the 0.7500 figure.
