The common currency remains within a broader uptrend despite the current bearish correction
EURUSD has been in a corrective mode since yesterday, retaining a bearish bias on Friday. The pair dipped to the 20-DMA that has been capping further losses so far. The daily RSI has slipped from the 70 handle and pointing lower in the neutral territory, suggesting there is room for a further retreat in the short term. However, the common currency remains within a broader uptrend despite the current bearish correction that could be limited if the mentioned moving average, which has been acting as support for two months already, withstands the pressure in the short term. On the hourly charts, there are some recovery signs now, but the euro still stays below the key moving averages.
GBPUSD has regained the upside bias following a two-day correction. Despite the pair has retreated from long-term highs, the prices stay above the 20-DMA that arrives marginally below the 1.3500 handle. it is very important for the cable to hold above this moving average as я correction below it would pave the way for a deeper retreat. On the positive side, the directionless daily RSI shows that downside risks are limited in the short term. In the four-hour timeframes, the pound was flirting with the 20-SMA at the time of writing, suggesting the prices could spend some time in consolidation before deciding on a further direction.
USDJPY climbed to mid-December highs marginally above the 104.00 figure earlier in the day. However, the dollar failed to preserve gains and retreated in recent trading, having settled below this key figure. On the positive side, the pair has recovered above the significant 20-DMA on Thursday in a strong rally from March lows. Now, the dollar needs to confirm the latest breakout on a daily closing basis in order to extend the bounce and reclaim the 104.00 level as support. On the hourly charts, however, the prices are slipping back below the 20-SMA, suggesting the greenback could lose the upside momentum in the short term ahead of the weekend.
XAUUSD has been sliding from two-month highs for the third day in a row on Friday. The bullion has slipped below the $1,9000 handle as well as the 100-DMA (today at $1,893). Furthermore, the precious metal slipped to the 20-DMA earlier in the session, suggesting a bearish correction could continue if this moving average fails to act as strong resistance in the short term. the daily RSI has retreated from the 70 handle and was pointing south, which implies further losses at this stage. On the upside, the immediate resistance is now represented by the mentioned $1,900 figure, followed by the $1,920 region.
USDCAD has settled in a tight range on Friday, lacking directional impetus despite a recovery in dollar demand. The pair sees a mild bearish bias in the intraday charts, being capped by the descending 20-DMA since last week. This moving average (today at 1.2760) represents the key short-term resistance. As long as the prices stay below this level, downside risks persist. On the four-hour charts, USDCAD has settled below the three key moving averages, adding to the negative short-term technical picture. In the longer-term, the dollar needs to regain the 1.2900 figure in order to shrug off the current weakness that could push the prices to fresh long-term lows below 1.2700.