The common currency is now threatening the next support zone represented by the 100-DMA
EURUSD has been on the defensive for the fourth day in a row on Thursday. The pair failed to hold above the 1.2000 psychological handle and dipped to fresh two-month lows around 1.1983. As such, the common currency is now threatening the next support zone represented by the 100-DMA, today at 1.1978. Considering that the daily RSI is pointing south but hasn’t entered the oversold territory just yet, the pair could derail this moving average for the first time in three months. In case of a bounce, the 1.2000 handle now acts as the immediate upside target for euro bulls. In shorter-term charts, the RSI has already entered the oversold conditions.
GBPUSD failed to extend consolidation around the 20-DMA and accelerated the decline on Thursday. As a result, the cable dipped to 2.5-week lows in the 1.3570 area before trimming some losses. Now, the immediate resistance is expected at 1.3600, followed by the mentioned moving average that arrives around 1.3650. On the downside, the next support is expected at 1.3520 while a break below 1.3500 would pave the way toward 1.3450 last seen on January 11. In a wider picture, however, the pound remains within a broader uptrend while correcting marginally lower from fresh tops set last week.
USDJPY extends its winning streak for the seventh session in a row today. The pair confirmed the latest break above the 105.00 figure, extending the rally to nearly three-month highs just below 105.30. Now the greenback needs to hold onto gains and stage another daily close above 105.00 in order to extend the ascent. On the negative side, the daily RSI has already reached the 70 mark, suggesting a downside correction could take place from here. In this case, the greenback could easily retreat back under the 105.00 mentioned support and target the 104.70 region.
USDCHF touched the 100-DMA for the first time in nearly three months, extending the rally for the fifth consecutive day on Thursday. Furthermore, the pair has exceeded the 0.9000 handle but is yet to confirm the latest breakout on a daily closing basis. The dollar climbed to a high of 0.9025 for the first time since early-December while retaining a strong bullish tone during the European hours. USDCHF was last seen trading at 0.9017, just at the mentioned moving average. On the four-hour charts, the pair has been deriving support from the ascending 20-SMA since the start of this month, adding to the upbeat short-term technical picture.
USDCAD inched higher in recent trading, bouncing from intraday lows around 1.2775. The pair has settled in a tightening range since Wednesday, struggling for direction below the 1.2800 handle. A decisive break above this level is essential for recovery in the short term while on the downside, the 20-DMA has been acting as support since last week. On the four-hour timeframes, the dollar was rejected from the 20-SMA, suggesting downside risks continue to persist. For now, it looks like USDCAD will continue to tread water in a tight range, with the daily RSI remaining flat in the neutral territory. A break below the mentioned 20-daily moving average (today at 1.2740) would mark deterioration in the short-term technical picture.