The short-term technical picture for the common currency looks relatively bearish
EURUSD slipped to one-month lows marginally above the 1.2100 figure on Thursday and came back under pressure today after failed bullish attempts around 1.2160. The short-term technical picture for the common currency looks relatively bearish as the greenback stays steady nearly across the board. In the short term, the selling pressure surrounding the pair could intensify, so a possibility of a break below 1.2100 remains elevated. On the hourly timeframes, the recovery momentum has been capped by the 20-SMA that arrives just below the 1.2150 region. This moving average represents the immediate upside barrier for the European currency.
GBPUSD managed to bounce from the ascending 20-SMA earlier this week and stays relatively elevated since then. The cable registered fresh long-term highs above 1.3700 yesterday and continues to cling to the upper end of the range on Friday, albeit trading with a bearish bias. On the positive side, the pound remains above the 20-DMA that acted as support during the recent retreat amid the resurgent demand for the safe-haven dollar. The fact that the pair stays afloat even as the dollar has been in a recovery mode may be a sign of its readiness to extend the ascent after some hesitation around the 1.3700 figure that represents the immediate barrier for sterling bulls.
USDJPY has been grinding lower since its rejection from one-month highs registered around 104.40 at the start of the week. Today, the prices slipped to 103.60 and stayed on the defensive during the European hours. Despite the retreat, the pair stays above the 20-DMA these days, suggesting the selling pressure could be limited. Furthermore, the mentioned moving average (today around 103.50) could further act as significant support and trigger a bounce in the days to come. In this scenario, the immediate resistance should be expected at 104.00, followed by 104.20 and 104.40.
The cross has been losing ground for the sixth day in a row on Friday, having extended losses to early-December lows around 125.65 in recent trading. During the sell-off, the common currency got below the 20-DMA, which is adding to the negative technical picture in the short term. If the downside pressure persists in the near term, the cross could target the 125.15 area next. On the upside, the immediate resistance is now represented by the 126.25 region, followed by the mentioned moving average, today at 126.50. So far, the path of least resistance remains to the downside. In the four-hour timeframes, the technical picture has deteriorated after the prices dipped under the three key moving averages.
USDCAD bounced from fresh April 2018 lows registered around 1.2625 yesterday. As a result, the pair managed to erase recent losses but failed to challenge the 1.2700 handle that continues to act as the immediate resistance. Despite recovery attempts, the sentiment surrounding the dollar remains downbeat, with the 20-DMA (today at 1.2753) representing an important hurdle for bulls in the near term. as long as the pair stays below this moving average, bearish risks persist. On the four-hour charts, USDCAD was last seen flirting with the 20-SMA, a decisive break above which could pave the way toward the 1.2735 region. A daily close above the 1.2700 barrier would indicate some improvement in the short-term technical picture.
Leave Your Opinion