The indecisive behavior among euro bulls implies that the common currency would need an extra catalyst to overcome the current weakness
EURUSD is targeting the 1.1800 figure following a plunge to fresh multi-week lows around 1.1760. However, the pair lacks momentum even as the dollar is slightly off four-month highs amid a recovery in risk demand. The indecisive behavior among euro bulls implies that the common currency would need an extra catalyst to overcome the current weakness, with downside risks persisting so far. On the hourly charts, the pair is holding marginally above the 20-SMA, a break below which would pave the way towards fresh four-month lows. On the upside, EURUSD needs to make a decisive break above the 1.1800 figure in order to retarget the key 200-DMA, today at 1.1857.
GBPUSD extends the recovery from early-February lows registered around 1.3670 on Thursday. In the process, the pair exceeded the 1.3750 area and was last seen targeting the 1.3800 level. However, the cable may lack the momentum to overcome this barrier as the USD index remains relatively resilient despite the current retreat from peaks. Furthermore, there is solid resistance around 1.3870 where the 20-DMA arrives. This moving average could cap further gains in the short term. On the downside, the immediate support now arrives at 1.3730, followed by 1.3700 and the 1.3670 region. Bearish risks remain limited as long as the prices stay above the ascending 200-DMA that arrives at 1.3663 today.
USDJPY has been rallying for the third day in a row, to register fresh mid-20202 highs around 109.55. The dollar managed to hold above the ascending 20-DMA earlier in the week and regained the 109.00 figure as a result. Now, the prices could target the 110.00 region, with the intermediate resistance levels arriving at 109.70 and 109.85. Also on the positive side, USDJPY has settled above the 200-weekly moving average. A daily and weekly close above this SMA (today just below 109.00) would be a confirmation of the latest breakout. In case of a bearish correction, the immediate support should be expected at 109.20, followed by the 109.00 key figure.
Gold prices keep oscillating around the 20-DMA, struggling for direction. On the weekly charts, however, the precious metal is trading lower following two weeks of modest gains. At the time of writing, the XAUUSD pair was changing hands around the flat-line, just below the $1,727 level. The bullion needs to stage a solid bounce from the mentioned moving average (today at $1,724) in order to shrug off the current weakness that prevents the prices from a more pronounced recovery. On the upside, the immediate resistance arrives at $1,745, followed by the $1,755 region. A daily close below the 20-DMA would be a sign of further deterioration in the short-term technical picture.
USDCAD surged to two-week highs around 1.2630 on Thursday. However, the pair failed to preserve gains and slipped back below the 1.2600 figure today as dollar demand has eased ahead of the weekend. The prices are so far managing to derive support from the 20-DMA that arrives in the 1.2570 region on Friday. If this moving average withstands the selling pressure, a bounce to fresh local highs could be expected. On the four-hour timeframes, USDCAD was last seen flirting with the 20-SMA while the RSI was directionless in the neutral territory, suggesting the downside potential is limited from here. On the upside, the 1.2600 level represents the immediate resistance for the time being.