To regain a bullish bias, EURUSD needs to get back above the 20-DMA that stands on the way to 1.2200
EURUSD dipped to nine-year lows around 1.2060 on Wednesday before recovering to 1.2100. Today, the pair struggles to get firmly back above this level despite the prices managed to recover from intraday lows. On the four-hour charts, the euro has settled below the 20-SMA. On the positive side, the pair created a number of long lower wicks on the same timeframes, suggesting the downside potential could be limited from here. Still, to regain a bullish bias, EURUSD needs to get back above the 20-DMA (today at 1.2173) that stands on the way to 1.2200. If the downside pressure intensifies any time soon, the common currency could derail the 1.2050 support zone.
GBPUSD briefly climbed to fresh May 2018 highs around 1.3760 yesterday before retreating sharply as dollar demand picked up across the board amid massive risk aversion globally. The cable extended the decline on Thursday and was last seen flirting with the 20-DMA, today at 1.3630. the pair needs to hold above this moving average in order to avoid deeper losses in the days to come. On the hourly charts, the pound has bounced marginally from the mentioned lows but still stays well below the key moving averages while the RSI looks directionless in the neutral territory, sending mixed short-term technical signals. On the upside, the immediate resistance is now expected at 1.3680, followed by the 1.3700 handle.
USDJPY bounced strongly from the 20-DMA on Wednesday, extending the rally to the 104.40 area in recent trading before retreating slightly. The pair’s upside momentum started to wane just ahead of the 100-DMA that has been acting as resistance since June 2020. As such, the greenback will likely need the additional bullish catalyst to challenge this strong barrier. It looks like the pair will extend the retreat now following the recent rally. If so, USDJPY could get back below the 104.00 handle that represents the immediate support at this stage. On the four-hour charts, the RSI is entering the overbought conditions, adding to reemerging bearish signs.
The Kiwi registered local highs just below the 0.7250 area earlier this week but failed to preserve the upside momentum and corrected lower. As such, the pair dipped to more than one-week lows marginally below the 0.7100 handle today. During the retreat, the New Zealand dollar got below the 20-DMA that turned back into resistance. Meanwhile, the daily RSI is pointing lower in the neutral territory, suggesting the path of least resistance is to the downside, at least in the immediate term. Should the pair derail the 0.7100 figure any time soon, the next support should be expected at 0.7070.
The Aussie extends its retreat on Thursday following yesterday’s decline below the 20-DMA that had been acting as support since early-November. The fact that the pair failed to hold above this moving average (today at 0.7722) implies that further losses could lie ahead, with the short-term technical picture deteriorating further. In recent trading, the Australian currency has derailed the 0.7600 figure for the first time this year, and a daily close below this level would be a confirmation of the latest breakdown amid broad-based dollar strength. If AUDUSD shifts into a recovery mode any time soon, the immediate upside target should be expected at 0.7640.