EURUSD managed to catch a lift and has settled in the positive territory on Friday. However, the pair encountered a local resistance around 1.0820 again, and had to retreat, still struggling to firmly get back above the 1.08 handle. Daily RSI is trending higher but remains deeply in the oversold territory, suggesting there is a lot of room for a recovery from the current levels. Still, the pair lacks the upside impetus and will likely remain under the selling pressure, at least as long as the prices stay below 1.10.
The cable has already recouped losses from yesterday, when the pair registered late-November lows around 1.2850. GBPUSD is now back above 1.29 but is yet to confirm a break of this level as there is a fairly tough intermediate resistance ahead in the form of the 100-SMA on the daily charts. Once above 1.1940, the pound will retarget the 50-SMA around 1.3050. RSI is pointing to a mild upside bias but it’s not enough to call a bottom at this stage, as the pair may resume the decline and get back below 1.29 in the near term.
USDJPY extended the rally to fresh April 2019 highs around 112.20 on Thursday and managed to finish above the 112.00 psychological level. But the pair failed to confirm another bullish breakout and switched into a corrective mode today. The daily lows around 111.50 acted as a local support zone, and the bearish potential from here looks limited. On the other hand, the daily RSI is pointing to the downside and remains in the overbought territory, suggesting some more losses may lie ahead. Anyway, the dollar will likely hold above the 1110.00 handle until the end of the day and the week.
The Kiwi has been nursing losses for a seventh day in a row, and reached mid-October 2019 lows on Friday. The technical picture in the daily timeframes points to a bearish extension, probably to 0.6260 should the 0.60 figure fail to act as a strong support. The current price is far below the key moving averages while RSI continues to point lower for the last ten days. These signals suggest the downside risks persist despite the oversold conditions. Weekly timeframes paint a bearish picture as well. Should the pair proceed to a recovery, the initial upside target lies around 0.6340.
USDCHF has been stuck in a range limited by the 50- and 200-DMAs since February 10. On Thursday, the pair was rejected from mid-December highs just below 0.9850 and staged a local reversal from there. Today, the dollar managed to hold above the 0.98 figure which acted as a local support. Still, the pair has settled in the negative territory on the daily charts, suggesting a period of a short-term consolidation may lie ahead before the greenback decides on further direction. It looks like the bulls decided to take a pause before a possible another attack at the above mentioned highs.