EURUSD rallied to one-week highs around 1.0980, where the bullish momentum started to fade, as traders were deterred by the 50-SMA at 1.10. Despite the subsequent retreat, the euro remains positive on the daily chart, and it looks like the pair will resume the ascent after a pause should the prices manage to hold above the 1.09 handle in the near term. The daily RSI continues to point north, suggesting the common currency may retain its upside bias, at least by the end of the day. On the other hand, EURUSD may struggle to extend the ascent due to several resistance levels in the 1.10-1.11 range. To break above this channel, the euro may need some additional catalysts.
Cable refreshed one-week highs as well on Thursday. The pair briefly jumped to the 1.20 psychological level and remains elevated, signaling its readiness for a bullish extension. The daily RSI continues to recover from the oversold territory, with the upside bias persisting, confirming the bullish short-term outlook for the pair. Once above the mentioned high, GBPUSD will target the intermediate resistance at 1.2050. However, the simple moving averages are pointing slightly downwards in the four-hourly timeframes, suggesting the pound could pause before another rally.
USDJPY failed to challenge the 111.70 area and attracted a fairly aggressive profit-taking today. The downside momentum gas accelerated during the recent trading, with the dollar flirting with nearly one-week lows around 109.55 after a break below the 110.00 level that now acts as the immediate resistance. As a result of the local sell-off, the daily RSI reversed lower, suggesting the pressure may persist in the near term. On the other hand, there are strong support levels on the way south, where the key moving averages could prevent deeper losses.
USDCHF continues its march south and has already approached the 50-SMA in the daily charts. After a break below the 200-DMA, more bears have reentered the game and sent the pair under the 0.97 handle. The greenback needs to stage a daily close above this level so that to hold above the 50-DMA that comes around 0.9680. However, in the near term, downside risks continue to persist, suggesting the prices may correct further, with the next target arriving at 0.96.
The pair failed to switch into a recovery mode after yesterday’s dip and fell to March 17 lows marginally above 1.41 on Thursday. Despite the recent correction, USDCAD stays relatively close to four-year highs and far over the key moving averages. At that, the daily RSI shows a bearish slope and has emerged from the overbought territory. Should the pair manage to hold above 1.40, a bounce may be expected in the days to come. In the hourly timeframes, the technical picture looks more bearish after the dollar got below the short-term moving averages on Wednesday.