The common currency needs to hold above the 1.1950 region in order to avoid a deeper retreat in the immediate term
EURUSD
EURUSD is off nearly one-month highs seen around 1.1975 earlier in the day. The pair failed to target the 1.2000 barrier as the greenback erased some of recent losses and turned steadier during the European hours. Now, the common currency needs to hold above the 1.1950 region in order to avoid a deeper retreat in the immediate term. On the hourly charts, the pair was last seen flirting with the 20-SMA while the RSI is pointing south, suggesting the euro could turn negative on the day in the short term. On the upside, a decisive break above the 1.2000 mentioned barrier would mark further improvement in the short-term technical picture. However, the upside potential looks limited at the moment.
GBPUSD
GBPUSD has been climbing for the third day in a row on Wednesday. Earlier today, the pair briefly exceeded the 1.3800 figure along with the 20-DMA but failed to preserve gains and retreated in recent trading, suggesting the bullish potential will remain capped by 1.3800 so far. On the downside, the immediate support arrives at 1.3745, followed by the 100-DMA, today at 1.3691. As long as the cable stays above this moving average, downside risks remain limited. In a wider picture, the pound is at a critical point now, as the pair is flirting with the 200-week moving average. A break below this MA would add to the downside pressure and would pave the way towards 1.3450 in the medium term.
USDJPY
USDJPY slipped to March 25 lows in the 108.75 area earlier on Wednesday before trimming losses. At the time of writing, the pair was clinging to the 109.00 figure, a decisive break above which would open the way to recovery in the short term. Still, downside risks persist as long as the dollar stays below the 20-DMA, today at 109.53. On the four-hour charts, the technical picture looks neutral but could improve somehow if the greenback manages to overcome the 109.00 figure on a daily closing basis. On the weekly timeframes, the pair is challenging the 200-SMA that could act as support if the dollar avoids another sell-off in the days to come.
XAUUSD
The bullion turned slightly lower on Wednesday following some gains seen a day earlier. XAUUSD faced local resistance just ahead of the $1,750 region to retreat to $1,740. Still, bearish risks remain limited as long as the yellow metal remains above the 20-DMA, today at $1,732. On the upside, a decisive break above the mentioned highs would pave the way towards last week’s highs around $1,760. On the hourly charts, the RSI is pointing slightly lower while the price has settled is stuck between the 20- and 100-SMAs, suggesting upside risks are limited at the moment. Meanwhile, the weekly timeframes continue to point to a fairly neutral technical picture.
NZDUSD
Following fairly muted trading, the Kiwi has finally seen a breakout on Wednesday. The pair bounced from the 20-DMA to exceed the 0.7100 figure. The New Zealand dollar climbed to March 23 highs in recent trading before retreating slightly. Now, as the pair is above the 0.7100 barrier, the next upside target arrives at 0.7140 where the 100-DMA lies. It looks like the prices could struggle to make a decisive break above this moving average in the short term, however. On the four-hour charts, the RSI is already correcting lower from the overbought territory, suggesting the pair could get back under the 0.7100 figure in the short term. In this scenario, the immediate support should be expected at 0.7070.
