EURGBP plunged to the lowest levels since May 2020, now threatening the 0.8800 figure
EURUSD climbed to the 1.2160 area earlier in the day but failed to preserve the upside momentum and retreated. In recent trading, the common currency turned negative on the day and was last seen around 1.2120. As such, it looks like the pair could derail the 1.2100 handle once again and extend the bearish correction following failed bullish attempts. However, the euro remains within a broader uptrend in the longer term, with the 20-DMA that arrives just below the 1.2200 figure being in market focus now. As long as the prices stay below this moving average, downside risks prevail in the short term.
GBPUSD rallied to fresh May 2018 highs above the 1.3700 handle on Wednesday amid broad-based ascent in sterling. The pair touched long-term tops at 1.3716 before retreating slightly. Despite the recent rally, the pair could see a daily close below 1.3700 as traders may proceed to profit-taking at attractive levels. If so, the immediate support should be expected at 1.3635, followed by the 1.3600 figure. On the four-hour charts, the pair is trading above the key moving averages while the bullish RSI hasn’t entered the overbought territory just yet, suggesting the pound could retain the current upside impetus despite corrective signs start to emerge.
USDJPY continues to oscillate above the 20-DMA that has been acting as support for nearly two weeks already. However, the pair turned negative following yesterday’s gains as the 104.00 handle had acted as resistance once again. So, the greenback needs to see a decisive break above this local barrier in order to stage a more sustained ascent from March lows registered earlier this month around 102.60. If the selling pressure intensifies any time soon, USDJPY could threaten the 103.60 region where the mentioned moving average arrives today. A break below this level would mark deterioration in the short-term technical picture surrounding the dollar.
NZDUSD turned marginally positive following the recent decline. Still, the pair lacks recovery momentum to challenge the 20-DMA that has been acting as resistance since late last week. Earlier this week, the prices managed to stay above the 0.7100 handle that triggered a mild bounce. Now, the Kiwi needs to make a decisive break above the 0.7150 area in order to challenge the mentioned moving average, today at 0.7167. However, as the selling pressure surrounding the greenback looks limited during the European hours, it looks like the pair will struggle to see a more robust ascent in the short term. as such, the 0.7100 support zone remains in market focus for now.
Following three days of mild gains, the cross plunged to the lowest levels since May 2020 on Wednesday as the common currency came back under the selling pressure while sterling jumped across the board. As a result, the pair dipped to the 0.8840 region during the European hours while staying on the defensive at the time of writing. EURGBP has been trading below the 100-DMA for over a week already and considering that the daily RSI is pointing lower in the neutral territory, further losses could lie ahead, at least in the short term. If so, the 0.8800 handle will come into market focus next. On the upside, the immediate resistance is now represented by the 0/8875 area.
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