In the immediate term, the euro’s upside potential remains limited as long as the prices stay below 1.0600
The dollar retains a bullish bias after yesterday’s rally that pushed the USD index back above the 104.00 mark. The greenback extended the ascent towards the 104.60, a break above which would pave the way towards the 105.00 figure. The US currency refrained from a deeper retreat in recent correction from local highs, and there seems little reason to expect much of a dollar sell-off in the near term. EURUSD was rejected from the 1.0600 handle on Tuesday, staying pressured today as the dollar retains a bullish bias during the European trading hours. The shared currency briefly fell below the 1.0500 mark earlier today before rebounding slightly. On the four-hour charts, the pair has settled below the key moving averages while the RSI points north in neutral territory, painting a mixed technical picture. In the immediate term, the upside potential remains limited as long as the prices stay below 1.0600.
GBPUSD fell on Tuesday after failed attempts to challenge a slightly descending 20-DMA, today at 1.2317. The cable lacked the momentum to settle above 1.2300 earlier in the week and has been on the defensive since then. Still, the selling pressure has been capped by the 1.2170 zone so far, with the prices clinging to the lower end of the local trading range. As such, any significant ascent looks unlikely at this stage, with long-term lows seen below 1.2000 earlier this month staying in the market focus. On the downside, the nearest support now lies at 1.2170, followed by 1.2130. In a wider picture, the pound would stay on the defensive while below the 1.3000 psychological level last seen more than two months ago. The immediate upside target now arrives at 1.2250, followed by 1.2330 and the mentioned moving average.
USDJPY has been retaining bullish tone for the fourth day in a row on Wednesday. The pair regained the 135.00 mark, now trying to settle above the 136.00 barrier on the way to 24-year highs seen last week around 136.70. As such, the overall technical picture remains bullish, with the uptrend intact, especially as the dollar holds above the ascending 20-DMA last seen nearly a month ago. Furthermore, the pair could hit 140.00 in the coming weeks should the US Treasury yields continue to move north in the short term. But first, the greenback will have to overcome the 137.00 hurdle that represents the immediate significant barrier for USD bulls. In the immediate term, some corrective movements could be expected amid overbought conditions, but the technical picture on the shorter-term timeframes stays upbeat at the moment.
The Aussie has been pressure since the start of the week, with the prices holding back below the 0.6900 figure on Wednesday as the US dollar resumed the ascent across the board while commodity currencies witness a retreat amid lower oil prices following four days of strong gains. AUDUSD was last seen changing hands just below 0.6880, down 0.41% on the day. The next support now arrives in the 0.6850 zone that capped the selling pressure earlier this month. Should this region trigger another bounce, the Australian dollar may regain the 0.6900 mark, followed by the descending 20-DMA that arrives marginally above the 0.7000 psychological level. However, the pair is unlikely to get back above this zone in the near term as downside risks continue to persist while below at least the 0.6930 intermediate barrier. In a wider picture, the pair continues to cling to mid-2020 lows last seen in May.