EURUSD printed new April 2017 lows around 1.0780 and struggles to regain the 1.08 handle. The modest recovery attempts in extreme oversold conditions are seen by traders as selling opportunities, suggesting further losses may lie ahead in the near term. Furthermore, the 50-SMA is about to make a bearish cross with the 100-SMA in the daily timeframes, which is another negative sign amid a broad-based dollar strength. So, as the selling pressure persists, there is a scope for a dip towards 1.07. On the upside, the immediate resistance arrives at 1.0815 and then around 1.0840.
The cable remains stuck in a range limited by the 50- and 100-DMAs over the past two weeks. The bearish bias prevails for a third consecutive day, since the pair failed to challenge the 1.3070 local resistance late last week. On Wednesday, GBPUSD struggles to regain the 1.30 handle, with the pair looking directionless as long as the prices have been oscillating around the psychological mark. Daily RSI is flat below 50 following a rejection from 52. In the hourly timeframes, the technical picture looks more bearish, however the sellers may wait for a sustained weakness below 1.2970 before positioning for further depreciation.
Following three days of consolidation marginally below 110.00, the dollar jumped north on Wednesday. The local rally has accelerated on a break above this important level, and the prices extended gains to May 2019 highs around 110.60, remaining bullish in the short term. In the 4-hour charts, the prices had been following the 20-SMA which is lagging behind the pair after a brief spike. RSI is now pointing to overbought conditions, so the greenback is yet to confirm the breakout. Should the upside momentum persist in the near term, the pair may target 111.00.
USDCHF extending gains since early February, having climbed to 0.9840 for the first time this year earlier in the day. However, the rally lacked any strong follow-through, and the pair has retreated since then. The prices turned nearly flat but still preserve a mild upside bias. On the upside, there is a strong resistance in the form of the 200-DMA that may scare off the bulls. It is possible that the dollar will see a limited downside correction before the buyers reenter the game at more attractive levels. In the weekly timeframes, the USDCHF pair has encountered the 200-SMA as well, suggesting a retreat may lie ahead.
NZDUSD has been making shallow recovery attempts following four days of decent losses. The pair received support around 0.6380 and remains below the 0.64 handle which stands as the nearest resistance now. Despite the current upside bias, the kiwi is still vulnerable to further declines, at least as long as the pair remains below the key MAs both in the hourly and daily timeframes. Once below 0.6380, NZDUSD will target mid-November lows around 0.6360.
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