The euro may need an extra catalyst to challenge 1.1900 as the selling pressure surrounding the greenback could abate
EURUSD surged to two-week highs around 1.1880 on Thursday, extending gains for the fifth day in a row. The pair regained the 20-DMA earlier this week and has been climbing north since then. If the mentioned intermediate barrier gives up in the short term, the common currency would face the 1.1900 barrier. However, the euro may need an extra catalyst to challenge this hurdle as the selling pressure surrounding the greenback could abate if the US GDP report surprises on the upside later today. If 1.1900 gives up eventually, EURUSD could target the 1.1940 region, followed by the 1.2000 key resistance last seen in mid-June. On the downside, the immediate support is now represented by the mentioned 20-DMA that arrives at 1.1820.
The cable has been rallying since Monday, extending the recovery from lows around 1.3570 registered last week. Today, the pair managed to overcome the 100-DMA around 1.3920, extending gains to the 1.3970 figure last seen more than one month ago. It looks like the pound could target the 1.4000 mark next. However, the pair may witness a pullback before climbing to fresh multi-week highs as the RSI on short-term timeframes has already entered the overbought territory. In this scenario, the immediate support should be expected at the mentioned 100-DMA, followed by the 1.3900 figure. On the weekly charts, the pair now needs to hold above the 20-week SMA in order to preserve recent gains.
USDJPY failed to overcome the descending 20-DMA on Wednesday and has been struggling to regain upside momentum since then. The pair briefly dipped to the 109.67 area earlier in the day before bouncing partially. Since then, the dollar has settled around 109.85, targeting the 110.00 figure again. If this immediate barrier gives up anytime soon, the mentioned moving average, today at 110.20, will come back into market focus. Of note, the daily RSI looks directionless in the neutral territory, suggesting the bearish pressure surrounding the dollar is easing now. If so, the prices could erase intraday losses to get back above 110.00 on a daily closing basis.
NZDUSD rallied past the 20-DMA during the European hours on Thursday to climb back to the 0.7000 psychological figure that has been capping gains since the beginning of the week. On Wednesday, the pair derived support from the 0.6900 level and has been in recovery mode since then. Now, the Kiwi needs to break above the 0.7000 barrier in order to extend the bounce. However, as the dollar is gradually trimming losses during the European hours, it looks like a retreat could take place in the short term. The immediate support is now expected at 0.6970, followed by the 0.6950 region.
USDCHF has been losing ground since the beginning of the week. On Thursday, the pair slipped to more than one-month lows around 0.9075 where the flat 200-DMA lies. Of note, this region triggered a bounce in mid-June, so if the prices manage to hold above it in the short term, a strong recovery could be expected. The initial upside target now arrives at 0.9100, followed by the 0.9135 region. On the four-hour charts, the technical picture looks bearish, with the RSI entering the oversold territory, flirting with the 30 figure. It implies that a bounce from here could be expected. In a wider picture, the technical outlook has deteriorated this week, as the pair has dipped under the 20-week SMA.