EURUSD extends gains for a fourth consecutive day on Wednesday. However, the pair still lacks the upside momentum to make a clear break above the 1.09 handle which acts as the key immediate resistance. The euro was rejected from intraday highs around 1.0850 and has been challenging the 1.08 intermediate support since then. The daily RSI shows only a modest upside bias, suggesting the bullish momentum is fading. Moreover, the inability to retest the above-mentioned resistance points to the growing bearish risks in the short term. So, once below, the pair will first target the 1.0760 area, where the daily lows lie.
Cable registered one-week highs around 1.1970, from where the pair had to retreat as the momentum has faded partially. Nevertheless, GBPUSD remains elevated and may resume the ascent after a pause should the prices manage to hold above 1.18 in the short term. Otherwise, the key support is expected at 1.1730. In the four-hour charts, the pair is flirting with the 50-SMA while the RSI pointing slightly lower in the neutral territory, suggesting the pound may extend the retreat in the immediate term before the bulls reenter the game. On the upside, GBPUSD needs to overcome the 1.20 handle so that to confirm the latest bullish breakthrough.
The pair continues to cling to the 111.50 figure since late last week. The greenback lacks the upside momentum to challenge the 111.70 resistance and at the same time, further holds above the key moving averages that act as support levels. On the downside, the key support arrives at 109.50, as a break below it will open the way towards the 109.00, 108.30, and 107.70, where the 100-, 200-, and 20-DMAs lie, respectively. At the moment, the current dynamics in the pair looks neutral as long as the prices stay above 111.00.
The cross briefly jumped to early-March highs marginally below 121.00 and has retreated partially since then. The pair has been rising for the fifth day in a row already, and it looks like the euro may challenge the 121.00 level, as the daily RSI continues to point upwards, and the pair is now above the key moving averages. However, should EURJPY fail to hold above 120.00 in the current bearish correction, it will be a sign of a weakening upside momentum. On the weekly timeframes, the general picture still looks bearish as long as the prices stay below the 100- and 200-SMAs around 124.00.
The kiwi retains its upside bias since late last week. The pair rose to five-day highs earlier in the day but failed to confirm a break above the 0.59 handle and has lost some traction as a result. Nevertheless, the daily RSI continues to point north and has recently recovered from the oversold territory, suggesting the prices may yet regain the above-mentioned highs after a local retreat should NZDUSD manage to hold above the 0.58 figure in the near term. Otherwise, the Kiwi may signal the beginning of a bearish correction. In this case, traders’ focus will shift back to the 0.5720 important support zone.