Despite the recent ascent has stalled, the euro remains within a broader upside trend
EURUSD’s five-day rally has stalled around 1.2150 on Thursday, sending the euro lower at the end of the week. The pair slipped to the 20-DMA that arrives at 1.2100. A break below this moving average could bring a more aggressive selling pressure in the short term if the greenback extends its broad-based recovery. The daily RSI shows a mild bearish bias in the neutral territory, suggesting the common currency will likely stay on the defensive for now. On the four-hour timeframes, EURUSD has slipped under the 20-SMA and was nearing the 100-SMA at the time of writing. Despite the recent ascent has stalled, the euro remains within a broader upside trend while staying above the 200-weekly moving average, today at 1.1513.
GBPUSD has been correcting lower from long-term highs registered around 1.3865 earlier this week. On Friday, the downside pressure has intensified somehow, pushing the cable below the 1.3800 figure. The pair dipped to the 1.3775 region during the European hours while staying above the ascending 20-DMA, today at 1.3710. In the short-term, the bearish momentum will likely stay limited, with the mentioned moving average continuing to act as support. On the upside, the pound now needs to regain the 1.3800 zone in order to erase recent losses and target fresh tops around 1.3900.
USDJPY has accelerated its recovery on Friday, exceeding the 105.00 handle in recent trading. The greenback climbed to a three-day high of 105.17 but failed to preserve gains and retreated marginally. The pair was last seen trading just at the 105.00 figure. The prices now need to confirm the latest breakout on a daily closing basis. Otherwise, another bearish correction could be expected. On the hourly charts, the RSI has corrected lower from the overbought territory while the prices have dipped under the 200-SMA, suggesting the dollar could struggle to settle above the 105.00 level by the end of the day and the trading week.
Gold prices failed to hold above the 20-DMA and turned negative again. On Friday, the precious metal remains under pressure, dipping to five-day lows around $1,812 earlier during the European hours. At the time of writing, the bullion was changing hands around $1,817, struggling to regain the $1,820 area. If the pressure intensifies in the short term, gold prices could threaten the $1,800 psychological level that has been acting as support for a week already. On the other hand, this figure could trigger a bounce that will eventually take the bullion back above the mentioned moving average that arrives at $1,840 today.
The Kiwi is back on the defensive after bullish attempts failed on Thursday. The pair was rejected from local highs around 0.7250, slipping down below the 0.7200 handle. in recent trading, NZDUSD dipped to the 0.7180 area where the 20-DMA lies. A break below this support zone would pave the way towards 0.7150, followed by the 0.7100 figure. However, it looks like the mentioned moving average could withstand the downside pressure in the short term. If so, a bounce should be expected. On the weekly charts, the pair is finishing the trading week unchanged, staying not far from Apri-2018 highs registered above the 0.7300 level at the start of this year.