EURGBP could challenge this week’s highs around 0.8670 in the short term if the outcome of the ECB meeting doesn’t disappoint euro bulls
EURUSD turned marginally higher on the day in recent trading, flirting with the 100-DMA that continues to cap gains in the common currency. The pair needs to overcome this barrier in the 1.2050 area in order to retest this week’s highs around 1.2080. If the moving average withstands the current pressure, a pullback towards the 1.2000 figure could be expected. On the hourly charts, the RSI is pointing north while the prices have exceeded the 20-SMA in recent trading, adding to a more upbeat short-term technical picture. On the weekly timeframes, the common currency is challenging the 20-SMA that could cap further bullish attempts.
GBPUSD was rejected from the 1.4000 figure earlier in the week and has been trending lower since then. The pair slipped to the 1.3885 region that represents the immediate support, a break below which would pave the way towards the 20-DMA (today at 1.3812) that turned into support last week. On the upside, the 1.3950 area needs to be broken in the short term. Otherwise, the cable could see more steep losses in the coming days. If so, GBPUSD may challenge the 1.3800 figure to retarget the 100-DMA at 1.3725. In the immediate term, the path of least resistance is to the downside despite the greenback struggles for direction.
USDJPY has been losing ground since the start of the month. On Thursday, the dollar extended losses to the 107.80 area before bouncing to the flat-line in recent trading. The pair was last seen clinging to the 108.00 figure, a daily close below which would pave the way towards fresh early-March lows. Should the greenback stage a reversal, the 108.30 area would represent the immediate target for bulls. In a wider picture, bearish risks persist as long as the prices stay below the 20-DMA that arrives at 109.35 today. The key upside barrier arrives at the 111.00 figure that triggered the current retreat.
The Kiwi failed to retain bullish impetus and turned lower on Thursday. As a result, the pair slipped back below the 0.7200 figure before deriving support from the 0.7170 area that now represents the immediate support now. On the upside, a decisive break above the 0.7220 region would mark some improvement in the short-term technical picture. However, it looks like the New Zealand dollar will stay under the selling pressure in the immediate term though losses would be limited. In a wider picture, NZDUSD has exceeded the 20-week SMA, which is a bullish sign, but the pair is yet to stage a weekly close above this moving average to confirm the breakout.
The cross has been trending higher for the third day in a row on Thursday. The pair bounced from the 20-DMA earlier in the week and has been rising since then. Today, the euro extended gains to the 0.8665 area and could challenge this week’s highs around 0.8670 in the short term if the outcome of the ECB meeting doesn’t disappoint euro bulls. On the downside, the immediate support arrives at 0.8630, followed by the 20-DMA that arrives at 0.8618 today. On the four-hour charts, the technical picture has improved as the prices have settled above the key moving averages and the RSI is pointing north in the neutral territory.
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