EURUSD plunged to mid-2020 lows below the 1.1600 figure, struggling to stage recovery
EURUSD
The greenback eased marginally on Thursday to come off fresh yearly highs registered a day earlier. However, the US currency remains resilient and elevated, suggesting the downside potential is limited for the time being. As such, EURUSD plunged to mid-2020 lows below the 1.1600 figure. Earlier in the day, recovery attempts were capped by the 1.1610 area. A daily close below 1.1600 would imply that further losses could lie ahead for the common currency in the coming days despite the oversold conditions. On the hourly charts, the pair was last seen flirting with the descending 20-SMA, adding to a bearish technical picture. Furthermore, the RSI in the same timeframes looks directionless just above the 30 figure, suggesting EURUSD would at least stay on the defensive in the immediate term. In a wider picture, the euro is now below the 100-weak SMA for the first time since mid-June 2020, which is another bearish sign.
GBPUSD
The cable dipped to the 1.3400 area for the first time since December 2020 on Wednesday. Today, the pair bounced to the 1.3470 zone and was last seen clinging to the upper end of the intraday range, trading 0.28% higher on the day. The daily RSI bounced from the 30 mark but the upside bias is too modest to bet on stronger gains in the short term. On the upside, the immediate resistance is now represented by the 1.3500 level, followed by the 1.3530 area. On the weekly timeframes, the bearish pressure is intensifying these days, with the pair has been losing ground for the fourth week in a row, departing further from the 20-week SMA, today at 1.3855. should the pound fail to settle above the 1.3450 area in the short term, the mentioned 2021 lows would come back into the market focus as the greenback remains on the offensive.
USDJPY
USDJPY rallied for the sixth day in a row on Wednesday to notch fresh February 2020 highs around 112.05 earlier today. Since then, the pair has retreated to turn slightly negative on the day. As such, the dollar is yet to confirm the latest break above the 112.00 figure on a daily closing basis. In case of a deeper bearish correction, a retreat below 111.80 would pave the way towards the 111.45 key zone. As long as the prices stay above this region, downside risks are limited. On the upside, should the greenback resume the ascent, a break above 111.20 would pave the way towards April 2019 highs around 112.40. On the four-hour timeframes, the technical picture remains upbeat as long as the prices stay above the ascending 20-SMA, today at 111.45.
NZDUSD
The Kiwi plunged to five-week lows on Wednesday to find support around 0.6860. Today, the pair turned marginally higher but still lacks upside momentum to stage a more robust recovery as the greenback stays elevated nearly across the board. The New Zealand dollar was last seen changing hands around 0.6870, up just 0.01% on the day. The key resistance now arrives in the 0.6890 area that capped early recovery attempts. On the four-hour timeframes, the technical picture suggests the pair will likely stay below the mentioned resistance in the short term. Furthermore, downside risks continue to persist despite the oversold conditions. If the selling pressure intensifies anytime soon, the pair could extend the decline towards the 1.6840 figure, while the key support zone is represented by the 0.6800 level. A break below this mark would pave the way towards November 2020 lows. However, it looks like NZDUSD will manage to stay above this handle.
