EURUSD needs to confirm a recovery above 1.1900 in order to retarget the 200-DMA
EURUSD managed to stage a bounce from fresh mid-April lows seen around 1.1885 earlier on Friday to get back above the 1.1900 figure during the European hours. However, the euro will likely struggle to regain the 1.2000 figure in the coming days while the overall bullish trend remains intact. On the weekly charts, the pair is now below the 20-week simple moving average, suffering losses for the third week in a row. However, only a break below 1.1700 would derail a broader uptrend from May 2020. In the immediate term, EURUSD needs to confirm a recovery above 1.1900 in order to retarget the 200-DMA that arrives at 1.1990, followed by the 100-DMA (today at 1.2035) and the descending 20-DMA in the 1.2140 region.
The cable slipped to six-week lows around 1.3855 on Friday as the dollar remains strong following the recent rally. The pair failed to hold above a slightly ascending 100-DMA, suffering losses for the fourth day in a row. The daily RSI is pointing south but is yet to enter the oversold territory, suggesting there is room for further losses in the near term. In this scenario, the immediate support should be expected at 1.3830, followed by the 1.3800 figure. On the positive side, the pound managed to bounce back above the 1.3900 figure in recent trading, which implies that the selling pressure could at least ease at this stage. On the hourly charts, the pair is nearing back to the descending 20-DMA, a break above which would mark further improvement in the short-term technical picture.
USDJPY peaked around 110.80 on Thursday but failed to extend gains and challenge the 111.00 barrier. The pair reversed to suffer decent intraday losses, extending the retreat today. Earlier in the day, the greenback briefly slipped below 110.00 before bouncing in recent trading. Now, as the pair has trimmed intraday losses, the prices need to hold above 110.00 on a daily closing basis in order to avoid deeper losses in the coming days. On the four-hour charts, the dollar is yet to regain the flat 20-SMA so that to reenter positive territory on a daily closing basis.
The precious metal bounced on Friday following five consecutive days of losses. The bullion plunged to early-May lows around $1,867 yesterday before recovering to the 100-DMA in the $1,794 in recent trading. A decisive break above this moving average would pave the way towards the $1,900 psychological figure. On the downside, the $1,770 area remains in market focus as long as the bullion stays below $1,800 while the key upside target arrives at the $1,900 handle last seen one week ago. On the positive side, the bullion regained the 20-hour SMA, suggesting the prices could challenge the $1,800 immediate target in the short term.
USDCHF extended gains to fresh two-month highs just below 0.9200 on Friday, advancing for the third session in a row. The pair seems to be losing upside momentum, however, as the overall dollar demand has been waning now following the recent rally. If the prices fail to overcome the mentioned barrier, a downside correction could be expected in the coming days, especially as the daily RSI is nearing the overbought territory. On the four-hour charts, the technical picture remains bullish, with the RSI looking directionless in overbought territory. If the dollar proceeds to a downside correction, the immediate support should be expected at 0.9160, followed by the 0.9130 area and the 0.9100 figure. On the upside, a decisive break above 0.9200 would pave the way towards 0.9220.