The greenback regained upside bias but lacks the momentum so far
As safe-haven dollar demand cooled, the USD index had been retreating this week from fresh long-term highs along with US Treasury yields. The index is now back above the 96.00 figure, refraining from revisiting yesterday’s highs around 96.30. The prices could see more gains if the 96.30 zone turns back into support in the near term. Should the index overcome this intermediate barrier, the USD will target the 96.70 region, followed by the 97.00 figure. On the downside, the immediate support is now represented by the 96.00 level. As such, EURUSD exceeded the 1.1300 barrier to notch local highs around 1.1330. However, the euro failed to preserve gains and retreated as traders take profit ahead of the ECB meeting outcome announcement. Should the pair fail to regain the 1.1300 figure in the near term, the selling pressure may intensify.
GBPUSD is struggling to hold above the 20-DMA following four days of gains on Thursday. The pair peaked at 1.5-week highs around 1.3590 yesterday to retreat marginally ahead of the closing bell. Today. GBPUSD has settled around the 20-DMA, currently at 1.3555, turning slightly negative on the day as the dollar recovers across the market. However, the downside potential looks limited at this point despite the daily RSI having reversed south in the neutral territory. Should GBPUSD get back below the 1.3510 zone where 100-DMA lies, the bearish pressure will intensify. On the hourly charts, the technical picture looks neutral, albeit the prices have settled below the 20-SMA. On the upside, a decisive break above 1.3600 would pave the way to further gains.
USDJPY dipped to the 114.15 zone on Wednesday amid a widespread sell-off surrounding the dollar. However, the pair bounced from this area to regain the descending 20-DMA today. The pair extended recovery to the 114.70 area, now targeting the 115.00 figure. The intermediate barrier arrives in the 114.80 region, a break above which would pave the way to a more robust recovery. On the weekly timeframes, the prices continue to hold well above the ascending 20-week SMA, currently at 113.65, with the overall technical picture staying upbeat despite the recent selling pressure that took the pair from multi-year highs above 116.00 seen earlier this month. At this point, the immediate support is represented by the 20-DMA, currently at 114.60. As long as the dollar stays above this moving average, the upside risks prevail in the near term.
USDCAD bounced from local lows around 1.2650, trying to regain the 1.2700 figure during the European hours on Thursday. The pair turned positive following three days of losses, and it looks like the prices could extend the ascent once the mentioned psychological level turns back into support. On the positive side, the prices stay well above the key moving averages despite a recent sell-off while the daily RSI reversed higher in neutral territory. On the four-hour timeframes, the dollar was last seen flirting with the 20-SMA, with the overall outlook looking more upbeat as well. A daily close above 1.2700 would pave the way towards 1.2730, followed by 1.2770 and the 1.2800 level that capped gains earlier this month.