In the longer-term, the outlook for EURUSD remains constructive
EURUSD rose to nearly-three week highs just around 1.2170 area. The euro has accelerated the ascent following some consolidation above the 20-DMA that has been acting as support for nearly a week already. In order to extend the rally, the common currency needs to overcome the 1.2200 barrier. However, this hurdle could trigger a retreat if the selling pressure surrounding the dollar eases any time soon. In the longer-term, however, the outlook for EURUSD remains constructive. On the hourly timeframes, the RSI was last seen flirting with the 70 critical level, suggesting further gains could be limited in the immediate term.
GBPUSD rose to fresh long-term highs around 1.3950, now targeting the 1.4000 psychological barrier that could trigger a retreat in the pair. At the time of writing, the cable was changing hands at 1.3933, slightly off the mentioned peaks while retaining a decent upside bias on the intraday charts. Of note, the RSI has just entered the overbought territory, suggesting the prices could struggle to extend the rally in the short term. it looks like the pound may witness a downside correction in the coming days before the bulls take the pair to the 1.4000 handle last seen in April 2018.
USDJPY peaked at 105.60 earlier in the day before retreating in an aggressive manner during the European hours. As a result, the dollar turned negative following four days of gains. The pair failed to confirm a break above the 200-DMA, which triggered an abrupt downside correction. On the positive side, the prices stayed above the 105.00 figure that is now back in the market focus on the downside, as a break below this level would pave the way toward the 20-DMA around 104.60, followed by the 100-DMA at 104.40. On the upside, the immediate resistance now arrives at 105.35, followed by the mentioned 200-DMA, today at 105.55.
The Kiwi keeps trading above the ascending 20-DMA that arrives at the 0.7200 figure today. The pair rose to five-week highs in the 0.7270 area in recent trading and was last seen trading at the higher end of the range. As the daily RSI stays in the neutral territory, it looks like the New Zealand dollar could extend the ascent in the short term. In this scenario, NZDUSD will target the 0.7300 figure that could cap further gains. On the downside, the immediate support arrives at 0.7230, followed by the 0.7200 figure where the mentioned 20-daily moving average lies.
The Aussie extends its gradual ascent from early-February lows around 0.7560. The pair climbed to the 0.7800 handle for the first time since mid-January on Tuesday while retaining a solid bullish bias during the European hours. The prices will likely struggle around 0.7820 if the psychological level gives up, so a downside correction could be expected in the short term. On the other hand, the daily RSI retains upside bias but is yet to enter the overbought territory, suggesting AUDUSD could extend bullish attempts before a correction takes place. On the four-hour charts, the pair remains elevated while staying above the key moving averages.