The cable climbed to the 1.3700 handle earlier in the day before retreating back to the opening levels in Europe
EURUSD
EURUSD turned negative on the day after failed attempts to overcome the 20-DMA that now represents the immediate resistance. The pair has encountered a barrier around 1.2220 and has slipped back below the 1.2200 figure during the European hours as the greenback started to erase yesterday’s losses nearly across the board. As of writing, the common currency was changing hands around the intraday lows in the 1.2170 area. If the prices get below this level, the next bearish target should be expected at 1.2130. On the hourly charts, EURUSD has slipped below the ascending 20-SMA while the RSI is pointing to the downside in the neutral territory, suggesting there is further room to the downside in the short term.
GBPUSD
The cable climbed to the 1.3700 handle earlier in the day before retreating back to the opening levels in Europe. The pair was once again rejected from the psychological resistance, suggesting a double top was created at 1.3700. So, the prices may need extra impetus to overcome this hurdle. It looks like the pound will continue to struggle around this figure and could see another downside correction in the near term. Meanwhile, the daily RSI looks directionless in the neutral territory, suggesting the pair could spend some time in a consolidation mode before deciding on the further direction.
USDJPY
USDJPY bounced from the 20-DMA around the 103.50 area that acted as intraday resistance on Wednesday. As a result, the pair has recovered into the positive territory and was nearing the 104.00 figure at the time of writing. However, the greenback could lack the recovery momentum to make a decisive break above this level that could trigger a retreat in the short term. On the four-hour charts, the prices are now stuck between the 20- and 200-SMAs while retaining bullish bias during the European hours, which implies the dollar could extend recovery attempts in the immediate term. In a wider picture, however, USDJPY remains within a bearish trend, still being capped by the descending 20-weekly MA.
USDCAD
USDCAD resumed the recovery after a sell-off seen on Tuesday, still, the pair lacks the upside momentum to erase yesterday’s losses, with the 20-DMA deterring buyers. The pair found a bottom around the 1.2700 figure earlier in the day and has turned positive while trading around 1.2740 at the time of writing. The immediate upside target now arrives at 1.2760 where the mentioned moving average lies. As long as the prices stay above 1.2700, downside risks look limited. If this level gives up, USDCAD could slip to the 1.2630 area where April 2018 lows arrive. In the longer run, the dollar has been staying within a broad bearish trend since last spring.
EURGBP
The cross has accelerated the slump following a break below the 200-DMA on Tuesday. Today, the euro extended losses, having declined below the 0.8900 handle for the first time since late-November. The daily RSI continues to point downwards, targeting the 30 figure while staying in the neutral territory, suggesting further losses could be ahead in the short term. In the four-hour timeframes, EURGBP has declined below the key moving averages while the RSI has entered the oversold conditions but continues to move south, which implies that the prices may suffer further losses before a reversal takes place. The immediate support is now expected at 0.8880, while on the upside, the nearest resistance arrives at 0.8930.
