USDCHF has been deriving support from the ascending 20-DMA for nearly three weeks already
The USD index climbed to fresh highs of the year on Wednesday due to a safe-haven demand amid the persistent concerns that the Federal Reserve will start policy tightening soon. The euro remains under severe selling pressure, suffering losses for the fourth day in a row on Wednesday. Earlier in the week, the pair failed to hold above the 1.1700 figure to extend losses to November lows in the 1.1655 area. EURUSD could visit fresh long-term lows in the near term. If the 1.1655 area fails to withstand the pressure, the 1.1630 region would come into the market focus. The persistent downside pressure could send the euro to the 1.1600 figure eventually. Of note, the daily RSI is pointing south but hasn’t entered the oversold territory just yet, suggesting there is room for further losses at this stage. On the upside, the immediate resistance arrives around 1.1680, followed by the 1.1700 level.
The cable remains under pressure following yesterday’s plunge amid dollar strength in combination with risk aversion. The pair extended losses to the 1.3500 figure earlier on Wednesday to register October 2020 lows before bouncing marginally. The pound was last seen changing hands around 1.3523, down 0.08% on the day. On the hourly timeframes, GBPUSD struggles to regain the 20-SMA while the RSI has exited the oversold territory. On the one hand, the technical picture suggests the selling pressure could be waning for the time being. On the other hand, it looks like the recovery momentum will say limited in the short term, with downside risks persisting as long as the cable remains below the 20-DMA, today at 1.3740. The immediate upside target now arrives at 1.3600.
USDJPY extended the rally to March 2020 highs earlier today before turning negative following five days of gains in a row. The pair climbed to the 111.70 area but failed to preserve upside momentum and corrected lower to settle around 111.30 in recent trading. Despite some profit-taking, the overall technical picture remains upbeat, with the prices staying above the 111.00 figure. However, should the pressure intensify anytime soon, the greenback could get back below this level in the short term. In this scenario, USDJPY would target the 110.80 region, followed by the 110.55 zone and the 110.30 figure. In a wider picture, the pair remains buoyed.
USDCHF has been climbing north for the fourth day in a row on Wednesday. However, the momentum has slowed today, with the pair struggling to make a decisive break above the 0.9300 figure after a brief rally during the early European hours. The dollar has been deriving support from the ascending 20-DMA for nearly three weeks already, adding to an upbeat technical picture. On the downside, the immediate support now arrives at 0.9275, followed by the 0.9255 zone. Of note, if the prices fail to regain the 0.9300 figure in the short term, downside risks could reemerge. In this scenario, the mentioned support levels would come back into the market focus.
USDCAD briefly dipped to nearly two-week lows before bouncing on Tuesday. However, the pair failed to extend gains to turn marginally lower today. Still, the downside potential looks limited for the time being, with the dollar holding above the 20-DMA. On the upside, the immediate barrier arrives at the 1.2700 figure. A decisive break above this level on a daily closing basis would pave the way to the 1.2730 intermediate resistance. However, it looks like the pair could lack upside momentum to resume the ascent in the short term. On the four-hour charts, the technical picture looks neutral, as USDCAD has settled around the 100-SMA while the RSI is directionless in the 51 area. For the time being, bearish risks are limited as long as the pair stays above the 1.2600 figure.