The outlook for EURUSD is improving on weekly timeframes following a steep decline witnessed last week
EURUSD erased intraday losses to climb to local highs around 1.1778 during European hours. The euro continues to target the 1.1800 barrier. However, it looks like the common currency could lack the upside momentum to challenge this handle anytime soon as the greenback makes some recovery attempts. The euro needs to stage a decisive break above the 1.1780 intermediate resistance in order to challenge 1.1800 eventually. On the downside, the pair would face the initial support around 1.1750 should the prices correct lower in the short term. EURUSD was last seen flirting with the 20-DMA, struggling to see a more robust ascent. In a wider picture, the outlook on weekly timeframes is improving following a steep decline witnessed last week.
As the dollar is trending marginally higher on Thursday ahead of the Jackson Hole meeting, GBPUSD slipped marginally on Thursday following three days of gains. The pair extended the advance to 1.3767 during the Asian session but failed to preserve upside bias and turned marginally lower on the day as a result. As of writing, the cable was last seen changing hands at 1.3745, down 0.10% for the day. On the hourly charts, the technical picture looks neutral, as the prices are now stuck between the key moving averages while the RSI is directionless around the 51.50 figure. On the downside, the initial support arrives at 1.3730, followed by the 1.3700 level. As long as the pound stays above this psychological mark, downside risks are limited in the short term.
USDJPY is now back above the 110.00 figure, with the pair climbing to one-week highs in the 110.20 region earlier in the day before trimming gains in recent trading. It looks like the dollar may need an extra catalyst in order to overcome this area in the short term. If this level gives up, USDJPY could climb to 110.60, followed by the 110.80 figure last seen two weeks ago. At this stage, the pair needs to confirm recovery above 110.00 on a daily closing basis. Otherwise, the prices could retreat back below the 20-DMA, today at 109.80. USDJPY needs to hold above the 109.40 region in order to avoid another sell-off towards last week’s lows in the 109.10 zone. In a wider picture, the pair keeps flirting with the 20-week SMA while retaining a slight upside bias.
Following three days of gains, the Kiwi turned marginally lower on Thursday as dollar demand has picked up somewhat. The pair peaked at 0.6980 yesterday and has been correcting lower since then. The prices dipped to the 0.6945 region earlier in the day before trimming losses to the 0.6960 area in recent trading. The New Zealand dollar was last seen flirting with the 20-DMA. The pair needs to make a decisive break above this moving average in order to retarget the 0.7000 psychological level. On the four-hour timeframes, NZDUSD is now stuck between the key moving averages while the RSI is pointing higher but is yet to enter the overbought territory, suggesting the pair could erase recent losses by the end of the trading day.