EURUSD extends the decline for a fourth consecutive day on Friday. The pair briefly dipped below the key moving averages yesterday and trying to cling to the 200-DMA that acts as a local support now. As a result of the retreat from highs around 1.15, registered at the start of the week, the daily RSI has clipped from the overbought levels and has reached the neutral zone, pointing to the downside. This indicator suggests that the euro will likely remain under the selling pressure for the time being. Furthermore, a daily and weekly close below 1.11 will deteriorate the short-term technical picture for the common currency.
A similar picture is seen in the GBPUSD daily timeframes. The pair has been retreating since Tuesday and extended the decline to fresh early-October lows around 1.2450 today. The pound is trading below all the three moving averages now and a bearish slope in the daily RSI points to further losses, as the index hasn’t entered the oversold territory just yet. On the weekly timeframes there is a huge bearish candle, and the prices are below the moving averages as well. GBPUSD needs to get back above at least the 1.28 level to mitigate the downside risks in the coming days.
USDJPY continues its volatile recovery from the lows just above 101.00. The pair has accelerated the upside correction on Friday and tried to regain the 107.00 handle but was rejected from one-week highs around 107.50 and retreated partially, as traders were spooked by the 20- and 200-DMAs above 108.00. As long as the dollar remains below this level, the bullish impetus is looking indecisive and the possibility of another sell-off persists. In the immediate term however, the prices could settle around the current levels and even make another attack at the 107.00 figure as the daily RSI is strongly bullish.
The cross remains volatile these days, with the pair rising aggressively after two days of decent losses. The prices registered daily highs around 119.25 but has retreated below 119.00 quickly. Anyway, the euro so far remains not far from the upper limit of the current trading range. As a result of an aggressive reversal in the pair, the daily RSI turned bullish in the neutral area, suggesting there is a scope for another rally that may take the cross above 119.00 on a daily closing basis.
The pair retains its upside bias after a plunge to lows below 0.92. However, the 0.9550 region acts as a resistance for a second day in a row, suggesting the dollar lacks the bullish momentum to extend the rebound and may stage a local reversal should the prices fail to make a decisive break above this area in the near term. on the downside, the immediate support arrives at 0.9450. Once below this level, the greenback could retarget the 0.93 handle.