USDJPY needs to hold above the 127.00 figure so that to stay afloat and refresh multi-year highs after a local bearish correction
EURUSD
The USD index came off two-year tops seen around 101.00 earlier in the day. Profit-taking has brought the dollar down to the 100.30 zone that has been capping losses so far. The decline looks more like a technical correction amid overbought conditions. However, the pressure could persist in the near term as the prices could see a deeper retreat before attracting fresh buying pressure. Against this backdrop, EURUSD bounced strongly to settle well above the 1.0800 mark during the European trading hours. The pair was last seen changing hands just below intraday highs seen at 1.0866, adding 0.68% on the day. The next upside target for euro bulls now arrives at 1.0900, followed by the descending 20-DMA, today at 1.0923. However, it looks like the common currency would lack the upside momentum to overcome this moving average in the near term as the dollar could attract dip buyers around the 100.00 psychological level.
GBPUSD
As the buck fell across the board, the cable recovered above the 1.3000 figure in recent trading to settle in positive territory on Wednesday after four consecutive days of losses. The pair advanced to 1.3045, trading just below the 20-DMA that could cap further gains in the near term. of note, the moving average, currently at 1.3080, has been preventing the cable from recovery for a month already, suggesting the pair could need a more pronounced sell-off in the USD in order to overcome this barrier on a daily closing basis. On the four-hour charts, the technical picture looks neutral as GBPUSD is flirting with the 20-DMA while the RSI is directionless in neutral territory, suggesting the prices could hold off more robust gains in the immediate term. In a wider picture, the cable stays depressed just above November 2020 lows registered last week around 1.2970.
USDJPY
Early on Wednesday, USDJPY advanced to fresh twenty-year highs above the 129.00 handle. The pair extended the ascent to 120.40 before retreating amid a widespread sell-off surrounding the greenback. As a result, the priced have settled around 128.00, refraining from a deeper correction despite the persistent oversold conditions. Now, USDJPY needs to hold above the 127.00 figure so that to stay afloat and refresh multi-year highs after a local bearish correction. On the upside, the next major target now arrives at the 130.00 psychological figure that could cap further gains and trigger a more pronounced retreat eventually. On the weekly charts, the pair has been advancing north for the seventh week in a row, looking extremely overbought across the timeframes.
AUDUSD
The Aussie has been retaining a bullish tone since Tuesday, accelerating the ascent on Wednesday due to USD weakness. The pair rallied to nearly one-week highs around 0.7440, extending the pullback from mid-March lows seen at 0.7340 earlier in the week. Now that the prices are back above 0.7400, the market focus shifts to the 20-DMA, currently at 0.7466. In the near term, the Australian dollar could challenge this moving average, but the pair will likely stay below this hurdle on a daily closing basis as the pressure surrounding the greenback could be limited. Still, the near-term technical picture has improved somehow since the start of the week. On the four-hour timeframes, AUDUSD is now stuck between the key moving averages while the RSI is losing the upside bias, suggesting further gains could be limited from here.
