USDCHF peaked at three-month highs just below the 0.9100 figure and has been under pressure since then
EURUSD rallied above the 1.2200 handle for the first time since mid-January on Thursday amid broad-based dollar weakness triggered by Powell’s dovish comments in inflation. The pair peaked in the 1.2220 zone that could act as resistance and trigger a retreat as it was last month when the euro encountered the 20-DMA in this region. If so, the common currency may get back below 1.2200 on a daily closing basis. On the downside, the immediate support is now located at 1.2180, followed by the 1.2145 area. Meanwhile, the mentioned 20-daily moving average now arrives just under the 1.2100 figure. As long as the pair remains above this level, downside risks look limited.
GBPUSD refreshed long-term highs above 1.4200 on Wednesday before retreating marginally. Still, the cable retains a bullish bias in the intraday charts today, suggesting the pair is ready to set fresh records despite the overbought conditions. GBPUSD rose to the 1.4233 figure yesterday and was last seen trading at 1.4160, struggling to regain the 1.4200 level. On the four-hour charts, the pound has been trading above the 20-SMA for a week already. So, a break below this moving average could trigger a downside correction in the coming days. On the upside, if the mentioned tops give up any time soon, the 1.4250 area will come into market focus next.
USDJPY has been rallying for the third day in a row on Thursday as the greenback outperforms the Japanese safe-haven counterpart. The pair climbed to 106.15 for the first time in nearly a week but is yet to confirm the latest breakout on a daily closing basis as traders may proceed to profit-taking around the 106.00 figure. If so, the initial support should be expected at 105.80, followed by the 200-DMA around 105.50. On the positive side, the pair has settled above the key moving averages that now represent support levels while the daily RSI is pointing north but hasn’t entered the overbought territory just yet, suggesting there is room for further upside in the short term.
The Kiwi has been rising for the sixth consecutive day already, climbing to August 2017 highs in recent trading. The pair reached the 0.7465 zone earlier in the day before retreating slightly. Now, the prices need to hold above the 0.7420 area in order to avoid a downside correction. Of note, the daily RSI has entered the overbought conditions, suggesting a technical retreat could be expected soon. On the hourly charts, the RSI has already reversed south, which implies some deterioration in the near-term technical picture. at the same time, NZDUSD remains within a broader bullish trend which stays intact as long as the pair is holding above the 20-weekly moving average that arrives at 0.7050.
USDCHF turned negative on Thursday following two days of gains. The pair peaked at three-month highs just below the 0.9100 figure yesterday and has been under pressure since then. However, the downside momentum looks limited for the time being, with the dollar holding above the 0.9000 level. The pair was last seen trading marginally above the intraday lows registered around 0.9040 earlier in the day. If this local support withstands the pressure, a bounce could be expected. In this scenario, USDCHF may retarget the 0.9080 region, followed by the mentioned 0.9100 psychological resistance. A decisive break above this level would be a confirmation of the latest breakout.