EURUSD extends the recovery for a fourth consecutive day on Wednesday. The pair eroded the 1.09 handle for the first time in two weeks but is yet to confirm a break above this important level. Technical indicators don’t show any clear bullish signals, with RSI pointing only slightly higher in the daily timeframes. Once the 1.09 level is broken, the euro may target the 1.0950 area, where the next resistance lies. In the weekly charts, EURUSD remains bearish, trading not far from long-term lows and staying far below the key moving averages, suggesting there is much room for a recovery.
The cable turned negative on Wednesday following a brief spike during the previous day. The pair failed to hold above the 1.30 handle and is now below the 100-DMA, trading close to the 1.2920 area. The downside momentum suggests there is a threat of a break below 1.29 in the near term, with the daily RSI pointing south around 45. The fact that the pound has settled below the 100- and 50-DMAs again also gives some ground to expect further decline in the near term.
USDJPY is making recovery attempts following three days of losses from the levels above 112.00. The pair has found support at the 20-DMA marginally below the 110.00 figure and has been challenging the 110.50 intermediate resistance. Once above, the dollar may retarget 111.00. the bullish scenario may come true in the short term, as both the daily RSI and the moving averages are now pointing slightly upwards. Should the selling pressure reemerge, USDJPY will likely get under the 20-SMA.
The cross climbed to two-week highs around 0.8430 amid a broad-based weakness in the sterling. The pair resumed the ascent following a short-lived decline yesterday and now looks set for further gains towards the 50-DMA that arrives around 0.8460. Still, the euro is yet to confirm a recovery above 0.8, as the upside momentum looks unsustainable so far despite the RSI signals a slight upward bias. In the 4-hour charts, the technical picture is more bullish, with the pair trading just shy of the 200-SMA, being above the 50- and 100-SMAs.
AUDUSD hit fresh 11-year lows at 0.6560 as the selling pressure has intensified following a break below 0.66 earlier in the day. The pair has been steadily declining since the start of the year and may suffer further losses, as bearish technical signals prevail. The daily RSI has settled in the oversold territory below 30 while all the three key moving averages pointing slightly south. Should the Australian dollar shift into a recovery mode any time soon, the initial resistance now arrives at 0.66.