The common currency could slip towards the 1.2180 region in the short term if the dollar proceeds to a more robust recovery
EURUSD
EURUSD slipped from early-January highs seen around 1.2245 earlier in the day. The pair has settled around 1.2200 in recent trading, down 0.14% on the day. If the dollar proceeds to a more robust recovery, the common currency could slip towards the 1.2180 region in the short term. Of note, the daily RSI turned marginally lower in recent trading, suggesting the common currency could at least stay under some downside pressure in the short term before euro bulls reenter the game to send the prices to fresh medium-term highs. On the four-hour charts, EURUSD needs to hold above the ascending 20-SMA that arrives at 1.2173. A daily close below the 1.2200 level would bring some deterioration in the short-term technical picture.
GBPUSD
GBPUSD turned marginally lower on Wednesday following three days of solid gains. The cable climbed to late-February highs around 1.4220 on Tuesday before retreating to the 1.4150 area in recent trading. So far, downside risks look limited but a break below this intermediate support would pave the way to further losses, with the next bearish target arriving at 1.4130, followed by the 1.4100 figure. On the positive side, the pound remains well above the key moving averages, suggesting the overall bullish trend is intact at this stage. On the upside, should the pair regain upside momentum in the short term, a decisive break above the 1.4200 barrier is essential for the pair to challenge fresh multi-week highs eventually.
USDJPY
Following four days of losses, USDJPY bounced from the 20-DMA around 108.80 to erase yesterday’s losses on Wednesday. As such, the pair has settled above the 109.00 figure, facing the immediate resistance around 109.25. A decisive break above this hurdle would pave the way towards the 109.80. However, it looks like the upside potential would remain limited, with the greenback staying vulnerable to fresh losses despite the recent bounce. On the hourly charts, USDJPY was last seen challenging the 100-SMA last seen at the start of the week. should the prices overcome this local barrier, the technical picture would improve somehow.
XAUUSD
Gold prices faced resistance around $1,875 on Tuesday for the first time since late-January amid broad-based weakness surrounding the greenback. However, the precious metal failed to preserve gains and retreated marginally today. The bullion slipped from the mentioned highs to the $1,855 area in recent trading. It looks like the XAUUSD could see a deeper downside correction in the short term if the dollar extends the current recovery. Now, market focus is shifting back to the 200-DMA around $1,846 that represents the immediate key support. As long as the bullion stays above this moving average, downside risks are limited in the immediate term.
NZDUSD
The Kiwi continues to oscillate around the 20-DMA, struggling for direction these days. The pair peaked at 0.7270 on Tuesday before trimming intraday gains. Furthermore, the prices dipped back under the mentioned moving average today, as the dollar trimmed previous losses, bouncing from fresh multi-week lows. NZDUSD was last seen trading marginally below the 0.7200 figure, down 0.75% on the day. If the pair fails to get back above this level in the short term, further losses could be ahead. In this scenario, the New Zealand dollar would target the next support area represented by the 100-DMA around 0.7175. In a wider picture, the pair is flirting with the 200-week SMA, a break below which would mark further deterioration in the medium-term technical picture.
