EURUSD extended gains to late-June highs around 1.1340, where the 100- and 200-SMAs converge on the weekly timeframes. This area acts as a strong resistance, so a break above it will mark an important breakthrough in the ongoing bull run. The pair has accelerated the recovery from the lows below 1.08 over the last few days and thus the daily RSI has entered the overbought territory, suggesting a bearish correction may be near. Nevertheless, the indicator is still pointing north, and the slope is fairly steep. In other words, the euro may stay at least elevated for the time being.
GBPUSD has been rising for a fourth consecutive day on Friday. The pair registered fresh three-week highs above 1.30 but is yet to confirm the recent bullish breakout on a daily closing basis. The pound is now flirting with the psychological level that lies between the 50- and 100-DMAs that are about to make a cross. As such, it’s too early to bet on further gains as the 1.30 handle continues to act as a resistance area so far. On the other hand, the RSI has settled in the neutral zone and pointing higher, suggesting the upside potential is still there.
The pair continues to retreat from highs above 112.00 and dipped to new late-August lows around 105.00 today. Should this level cap the selling pressure and act as a strong support zone, a bounce could be expected in the near term. at the moment of writing, the dollar is changing hands around 105.30, with the next upside target arrives at 105.75. The daily RSI retains a bearish slope in the oversold territory while the key moving averages are neutral. The prices may trim intraday losses in the short term, but it’s still too early to call a bottom as downside risks persist both in the short-term and weekly timeframes.
The Kiwi has been on the rise since the start of the week. Today, the pair extended the recovery to three-week highs around 0.6370. NZDUSD was rejected from this area and trimmed intraday gains partially but remained near the top of the extended range. According to the daily RSI, the pair has the potential to gain further, and it’s still a long way to the three moving averages arriving marginally below the 0.65 figure which comes as a strong resistance. On the downside, the immediate support comes around 0.6320. once below, 0.63 will come into focus again.
The pair plunged to nearly two-year lows of 0.9336 and has rebounded a tad since then. The technical picture is bearish in the daily charts, with the RSI pointing downwards and the 50-DMA signaling a slightly negative slope. In the weekly timeframes, the picture has deteriorated dramatically over the last couple of weeks, and the RSI is just about to enter the oversold territory, suggesting further losses may lie ahead for the dollar. In other words, it’s too early to call a bottom at this stage, with the 0.93 handle being at risk now.