EURUSD found support below 1.09 and soared to the highest in three weeks on Thursday. Today, the pair extended gains to the 1.1050 area, where the 100-DMA lies and acts as a local resistance on the way towards 1.11. During the rally, the common currency exceeded the 50-DMA and retains the bullish tone during the European trading. The daily RSI is nearing overbought territory while the key moving averages remain neutral, suggesting the upside potential is limited at the current levels. On the downside, the immediate support now lies around 1.1025, where the 50-DMA lies.
GBPUSD struggles for a clear direction during the last trading day of the week. After an earlier dip to yesterday’s lows around 1.2850, the pair regained some ground but failed to regain the 1.29 handle following a rejection from 1.2920. on the upside, there are two intermediate resistance levels in the form of the 100- and 50-DMAs at 1.2975 and 1.3020, respectively. The daily RSI remains neutral, suggesting the dynamics will be unbiased in the near term. a daily close above 1.29 will somehow improve the short-term technical picture and could open the wat towards the above mentioned resistance levels.
The pair has accelerated the decline following a break below the 20- and 100-DMAs. Now, the dollar is coming closer to the 200-DMA around 108.40. A break below the 109.00 handle is a bearish signal, suggesting the prices may suffer further losses and derail the above mentioned moving average. Once below, USDJPY will target the 108.00 figure for the first time since January 8. A clear bearish bias in the daily RSI point to the persistent downside risks, at least in the near term. On the upside, the immediate resistance now arrives at 109.00.
USDCHF dipped to September 2018 lows marginally above the 0.96 key handle. the pair has reached the decisive point now, as a break below this level may fuel an even deeper sell-off despite the oversold conditions. On the weekly charts, the dollar retraced all the gains from the first two weeks of the month and as a result is only slightly positive in the monthly timeframes. In the short-term charts, the picture remains clearly negative despite the RSI has been making some recovery attempts during the recent trading.
The Kiwi plunged to early-October lows around 0.6230, as the pair resumed and accelerated the decline following a short-lived recovery on Thursday. The prices failed to hold above the 0.63 level and now threatens the 0.62 figure as the bearish pressure persists. The daily RSI continues to point downwards despite the oversold conditions while the key moving averages are mostly neutral at this stage. It is possible that NZDUSD will receive support at 0.62. In this case, the pair may be rejected from this level and shift into a recovery mode, with the first upside target coming at 0.6280.