It looks like further losses for the euro could lie ahead in the short term
EURUSD sank to fresh three-month lows around 1.1915 before trimming losses slightly. The dollar extends the rally as rising US Treasury yields keep risky assets under pressure, furling the safe-haven demand for the US currency. As the euro is now below the ley moving averages while the daily RSI is pointing lower, targeting the oversold territory, it looks like further losses could lie ahead in the short term. In a bearish scenario, the pair could derail the 1.1900 handle for the first time since November. However, this level could cap further losses as dollar demand should wane somehow following the rally. On the upside, the immediate resistance is now located at 1.1960, followed by 1.2000 and the 20-DMA, today at 1.2040.
GBPUSD failed to shrug-off dollar strength, losing ground since yesterday. However, the downside momentum in the pair looks fairly modest as compares to other dollar pairs, as the sterling itself feels stronger than most of its counterparts. The pair slipped to nearly one-month lows just above the 1.3800 figure, a break below which could send the prices to the 1.3760 region that will probably cap the selling pressure. Otherwise, the 1.3700 level will come back into market focus. On the negative side, the cable has settled below the descending 20-DMA, suggesting a recovery path could be uneasy. On the hourly charts, the technical picture looks downbeat as well.
USDJPY has been rallying for the eights out of the nine last days. The pair climbed to fresh nine-month highs in the 108.50 area, and it looks like the prices are ready to extend gains despite the overbought conditions. The pair has been trending higher since early-January when the dollar reached fresh March 2020 lows around 102.60. Now, the greenback could target the 110.00 level last seen one year ago. However, USDJPY could face stiff resistance on the 109.00 area where the important 200-weekly moving average arrives. Should the pair proceed to a pullback, the immediate support is now expected at 108.00, followed by 107.80, and the 100-weekly MA around 107.25.
The precious metal keeps sliding amid a stronger dollar on Friday. The bullion extended losses to fresh June 2020 lows in the $1,687 area, so now, the $1,700 figure acts as the immediate resistance. If the downside pressure intensifies in the short term, XAUUSD could threaten the $1,670 region, a break below which would pave the way towards the ascending 100-weekly moving average, today at $1,643. Adding to the downbeat technical picture, the pair has settled well below the key daily SMAs while the RSI in the short-term timeframes hasn’t entered the oversold territory just yet, suggesting there is room for further downside.
The Kiwi extends its aggressive retreat from long-term highs as the US dollar keeps rising across the board. The pair failed to hold above the 20-DM earlier in the week, to slip to late-January lows around 0.7130 in recent trading. If the selling pressure persists in the short term, the prices may target the 0.7100 figure that could act as support and trigger a bounce should US bond yields correct lower. Now, as the pair has settled below 0.7200, the immediate significant resistance arrives at 0.7170. On the hourly and four-hour charts, the RSI has entered the oversold territory, suggesting the New Zealand dollar may hold above the 0.7100 figure on a daily and weekly closing basis.