The euro remains bullish as long as the prices stay above the 20-DMA, today at 1.2135
EURUSD peaked at 1.2266 earlier in the week before correcting lower on Wednesday. In the process, the euro dipped below the 1.2200 figure, extending losses to 1.2175 earlier in the day. However, the common currency regained some bullish bias in recent trading, attempting to get back above the 1.2200 barrier at the time of writing. If this hurdle gives up, the mentioned highs last seen in January would come back into market focus. On the hourly charts, the pair is stuck between the key moving averages, pointing to a neutral technical picture in the immediate term. In a wider picture, the euro remains bullish as long as the prices stay above the 20-DMA, today at 1.2135.
GBPUSD has been trending lower since last week when the pair peaked at 1.4233. Today, the cable extended losses to 10-day lows at 1.4091 before bouncing back above the 1.4100 figure. It looks like the pair would lack upside momentum to see a more robust recovery in the short term despite the greenback struggles to preserve recent gains. On the downside, failed attempts to confirm a break above 1.4100 could push the pound to the ascending 20-DMA around 1.4057. The pair bounced from this moving average earlier this month and could again derive support in this area should dollar demand pick up in the coming days.
USDJPY climbed to one-week highs around 109.20 earlier in the day following a modest bounce from the 20-DMA that arrives in the 109.00 area. This level remains in market focus now, as the greenback is yet to confirm a break above it on a daily closing basis. Considering the dollar still looks fragile and vulnerable to fresh losses, the mentioned local highs may trigger a downside correction in the short term. In this scenario, the immediate support should be expected at 108.75, followed by the 108.60-108.55 area. On the upside, a decisive break above 109.20 would pave the way towards 109.35, followed by last week’s tops in the 109.50 area.
USDCHF climbed to 0.8993 earlier in the day before retreating back to the flat-line in recent trading. The pair has settled in a tight range, struggling to extend gains seen on Wednesday. Now, the key target for dollar bulls arrives at 1.9000. A decisive break above this barrier would be a sign of a more pronounced bounce. However, as the prices remain below the key moving averages that arrive in the 0.9030-0.9100 region, downside risks continue to persist at this stage despite the current recovery attempts. On the four-hour charts, the greenback is attempting to hold above the 20-SMA that arrives at 0.8965.
USDCAD finished above the 1.2100 figure on Wednesday, extending gains to mid-May highs around 1.2140 today. Furthermore, the pair derailed the descending 20-DMA for the first time in over a month before retreating. The pair turned lower today as dollar demand has waned following the recent rally. The prices dipped to the 1.2100 handle, a break below which would pave the way towards the 1.2060 initial support if the downside correction continues in the short term. On the four-hour charts, USDCAD is getting bearish following a break below the descending 100-SMA while the RSI has reversed south in neutral territory, suggesting there is room for further downside in the immediate term.
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