EURUSD bounced from the 1.1275 area again and exceeded the 1.13 handle. The pair registered daily high at 1.1366 and trimmed gains as the euro lacks the upside impetus following a decent bearish correction witnessed yesterday. As such, the 1.13 level remains in focus now, and the pair will likely continue to oscillate around it for the time being before we see a more pronounced directional bias. The daily RSI is pointing upwards but has settled close to the overbought territory, suggesting the bullish potential is limited at this stage.
The pound briefly dipped to one-week lows around 1.2830 earlier in the day and reversed losses fairly quickly afterward. Still, the pair remains shy of the key moving averages that are about to converge around the 1.30 psychological level. As long as GBPUSD remains below this level, the downside risks persist in the near term despite a bullish intraday bias. On the downside, the prices need to hold above 1.29 in order to preserve the current upside impetus and get back above 1.30 eventually.
The pair is back under pressure after a rally seen on Tuesday. However, the dollar stays above the 104.00 figure that acts as the intraday support now. A daily close above 105.00 is needed for a better technical picture. In the weekly timeframes, the dollar remains bearish despite a rejection from the recent lows marginally above the 101.00 handle. Furthermore, the weekly RSI is pointing south but is yet to enter the oversold territory, suggesting there is scope for further losses ahead.
The cross jumped to fresh five-month highs around 0.8850 earlier on the day but trimmed gains to 0.8760 afterward. The 200-DMA remains in focus now, as the daily close above it will confirm the recent breakout. On the downside, important support arrives at 0.87, as a break below it may fuel more aggressive profit-taking at fairly attractive levels. In a wider picture, the pair looks bullish and has further upside potential. The 100-SMA on the weekly timeframes acts as a strong resistance.
USDCHF failed to confirm a break above 0.94 and dipped to daily lows around 0.9320. This area serves as the intermediate support on the way towards 0.93. as the pair resumed the downside move, the daily RSI has reversed and point lower again. By the way, the index is on the verge of crossing the oversold territory, suggesting the prices may stage another bounce and hold above the 0.93 handle in the near term. If so, the dollar could retarget the 0.94 level in the days to come.