As long as the euro stays above 1.1800, downside risks are limited
EURUSD struggled for direction earlier in the day before resuming the recovery. The pair has settled above 1.1850 but struggles to challenge the 1.1900 figure that represents the key immediate resistance, followed by the descending 20-DMA around 1.1930. On the four-hour charts, the common currency bounced from the 20-SMA while the RSI turned higher in neutral territory, suggesting the pair could at least preserve upside momentum in the immediate term. On the downside, the nearest support is represented by the 1.1825 mark, followed by 1.1800. As long as the pair stays above this level, downside risks are limited.
GBPUSD turned positive following three days of losses on Friday. The pair bounced from the 1.3740 area to regain the 1.3800 figure on recent trading. The cable extended gains to the 1.3825 region, a decisive break above which would pave the way towards the 1.3840 intermediate barrier, followed by 1.3900. The daily RSI turned marginally higher but the bullish bias is too modest to bet on stronger gains in the short term. In a wider picture, the pair needs to get back above the 200-week SMA to regain stronger positions. On the downside, the immediate support is now expected at 1.3800, followed by 1.3780 and 1.3740.
USDJPY plunged to 109.50 on Thursday, extending losses to nearly one-month lows. Today, the pair bounced marginally and was last seen flirting with the 110.00 figure, a decisive break above which would mark some improvement in the short-term technical picture following five consecutive days of losses. Now, the daily RSI has reversed north while the ascending 100-DMA continues to act as support. The dollar needs to regain the 20-DMA (today at 110.55) in order to retarget long-term highs registered at 111.65 last week. On the downside, the greenback needs to hold above 109.60 and confirm a recovery above 110.00 on a daily closing basis.
The Aussie dipped to 2021 lows around 0.7410 earlier in the day before reversing strongly in recent trading. The pair climbed to 0.7470, refraining from challenging the 0.7500 barrier so far. Despite the recent bounce, bearish risks continue to persist, and the path of least resistance remains to the downside in the near term. On the hourly timeframes, AUDUSD has settled between the key moving averages, looking neutral for the time being. While the nearest bullish target arrives at 0.7500, the immediate support is expected at 0.7440, followed by the 0.7400 figure.
USDCHF plunged dramatically on Thursday before rebounding slightly. Today, the pair struggles for direction around 0.9150 after peaking at 0.9175 earlier in the day. Now, the dollar needs to hold above 0.9130 in order to avoid deeper losses in the coming days. On the upside, the 20-DMA at 0.9175 represents the immediate resistance, followed by the 0.9200 handle. In a wider picture, the pair looks neutral on the weekly charts despite the RSI is pointing lower. In the immediate term, USDCHF needs to overcome the 20-hour SMA in order to retarget the 0.9200 barrier.