Following yesterday’s rejection from early-2020 highs above 1.12, EURUSD has settled around 1.1160 on Wednesday, struggling to regain the upside momentum. Despite the impetus has slowed, the technical picture on the daily timeframes remains clearly positive as long as the prices stay above the three key moving averages. The initial important support arrives at 1.11, where the 200-DMA lies. Should the bias switch to a negative one, the common currency may challenge this level and retarget the 100-DMA at 1.1050. The daily RSI shows no any bias, having settled around the overbought levels, suggesting the bullish potential is limited at this stage.
The pound turned marginally lower on Wednesday after yesterday’s recovery. The pair once again failed to break above the 1.2850 intermediate resistance and got back below the 1.28 figure. The cable stays below the 50- and 100-DMA since last week, with downside risks prevailing as long as the pair remains under the 1.30 psychological level. The daily RSI is pointing slightly lower in the neutral zone while the above mentioned show no any bias, confirming that the pair is directionless at this stage. On the upside, the immediate resistance arrives at 1.2850.
USDJPY registered fresh early-October lows around 106.85 after yesterday’s plunge below 107.00. Once the pair refreshed the lows, it has switched into a recovery mode in oversold conditions. As a result, the daily RSI managed to reverse higher, with the dollar regaining firmly the 107.00 figure. Despite a bounce, the short-term technical picture remains bearish as long as the prices stays below the key moving averages. The key target on the way north is represented by the 200-DMA around 108.40.
Following a plunge to 2015 lows late last week, the Kiwi started to recover and extended gains to 0.6325 yesterday. But the pair failed to keep the upside momentum and trimmed intraday gains as a result. On Wednesday, NZDUSD remains below 0.63 but retains a modest bullish bias, suggesting the prices could make another upside attempt in the near future should the above mentioned figure give up. The daily RSI has been recovering from the oversold territory and pointing slightly upwards, suggesting there is some recovery potential ahead.
The cross has been challenging the 200-DMA for a third day in a row. EURGBP has been steadily rising since February 19 and is on the verge of the next stage of the current bullish cycle. The pair is near five-month highs now and has reached a critical point. The fact that the prices struggle to break above the 0.8740 region since the start of the week suggests the bullish momentum may have been exhausted already. If so, the cross could shift into a corrective mode in the short term and target the initial support around 0.87.