EURUSD failed to keep the upbeat tone seen early in Asia and turned bearish again. Moreover, the pair has extended its March lows below 1.0930 in recent trading. Now, the euro is threatening the 1.09 handle that could be challenged if the selling pressure persists in the short term. after the recent sell-off, the daily RSI steepened its downside bias but is still far from the oversold territory, suggesting further losses may lie ahead for the common currency. The 50-DMA now acts as the immediate resistance around 1.1040 but to get back above this level, the pair first needs to regain 1.10.
The cable plunged below the 1.20 figure and registered multi-year lows around 1.1825 after a break under 1.19. Despite the extremely oversold conditions, the daily RSI is pointing lower, suggesting the pair may threaten the 1.18 level in the near term. GBPUSD has been in a bearish mode since reaching a local peak of 1.32 on March 9, and there are still no signs of a reversal. In the weekly timeframes, the technical picture has deteriorated immensely over the last ten days, and the RSI is about to enter the oversold territory.
USDJPY has recovered above 107.00 after the earlier dip and turned nearly flat on the day. In the hourly charts, the pair continues to follow the 20-SMA, suggesting the upside bias will persist in the immediate term. However, as the momentum looks unsustainable, the dollar is yet to confirm a rebound above the mentioned level on a daily closing basis. The intraday high was registered at 107.80, with the next resistance coming at 108.25 where the 200-DMA lies. In the 4-hour charts, the 20- and 100-SMAs act as local support around 107.00.
The pair is extending yesterday’s rally, having registered fresh local highs around 0.9650, just shy of the 50-DMA that may act as a barrier on the way to 0.97. However, as the daily RSI shows, the dollar may preserve its bullish momentum, at least in the short term. On the downside, important support arrives at 0.9560. As long as the prices remain above this level, the downside risks are limited. In the 4-hour timeframes, USDCHF has encountered the 200-SMA, a break of which is needed for the pair to extend the ascent.
USDCAD rallied above 1.44 for the first time since early 2016 and extended gains to 1.4470. The pair has been steadily rising since late February, having accelerated the ascent last week. The daily RSI has been in the overbought territory since March 6 but continues to point upwards, suggesting the pair may add to gains before a bearish correction takes place. On the upside, the immediate resistance comes at the 1.45 level that could difficult to break amid the overbought conditions. In case of rejection from the current levels, USDCAD will target the 1.4370 region first.