The common currency would need an extra catalyst to challenge the 1.2000 psychological barrier
EURUSD climbed to early-March highs just below the 1.2000 figure before retreating to the flat-line in recent trading. The euro remains on the offensive due to dollar weakness, however, it looks like the common currency would need an extra catalyst to challenge the mentioned psychological barrier in the short term. If successful, a decisive break above 1.2000 would open the door to the 100-DMA at 1.2050. followed by the 1.2115 region. On the four-hour charts, EURUSD has settled above the key simple moving averages while the RSI turned flat following the recent correction from the overbought territory, pointing to a mixed-short term technical picture.
GBPUSD keeps edging north since the start of the week though the upside impetus looks fairly modest. Still, the pair has climbed back to the 20-DMA that could turn into support on a daily closing basis if the pound manages to preserve the current bullish bias in the short term. The pair was last seen trading marginally below the 1.3800 figure that represents the immediate target for sterling bulls. Failure to break above this level could trigger a downside correction. However, the bearish potential looks limited at this stage. On the downside, the ascending 100-DMA continues to act as a strong support zone.
USDJPY has been losing ground since Monday as the dollar continues to weaken nearly across the board. Earlier in the day, the pair dipped to March 24 lows around 108.66 before bouncing slightly. During the sell-off, the greenback came back under the key 20-DMA, adding to a short-term bearish technical picture. If the prices fail to hold above the 108.40 area in the immediate term, the 108.00 figure would come back into market focus for the first time since early March. However, it looks like USDJPY will likely manage to hold above this zone, as the greenback tries to get steadier following the recent decline.
The Aussie rallied to nearly one-month highs on Thursday, staying on the offensive these days. The pair climbed to the 0.7760 area but came off highs slightly in recent trading. Following a decisive break above the 20- and 100-DMAs, the short-term technical picture has improved further. Also on the positive side, the daily RSI is pointing higher in the neutral territory, suggesting there is room for further gains at least in the near term. If the pair extends the ascent, the next barrier should be expected at 0.7775, followed by the 0.7800 figure last seen on March 18th. On the downside, the immediate support is now located at 0.7725.
USDCAD has been trending lower for the third day in a row on Thursday. Earlier in the week, the pair peaked at 1.2630 but failed to preserve gains and has been on the defensive since then amid broader weakness in dollar demand. The prices slipped to lows around 1.2475 for the first time since March 22 in recent trading, staying under pressure during the European hours despite a slight bounce witnessed in recent trading. Now, when the 20-DMA represents the key immediate barrier for dollar bulls, the path of least resistance is to the downside in the short term. In a wider picture, USDCAD needs to regain the 1.2630 hurdle in order to shrug off the current weakness.