EURUSD managed to reverse earlier losses and has climbed back to the 1.09 area during the recent trading. However, bulls lack the impetus to push the euro higher as uncertainty in the market persists. As such, the pair is off the recent lows around 1.0780 but is yet to make a clear break above 1.09 to show more sustainable dynamics. The key immediate resistance comes around 1.0925, a break above this level will open the way toward the 50-DMA that arrives at 1.0975. The daily RSI remains neutral however, suggesting the recovery potential is limited at this stage.
GBPUSD has been trading marginally higher on Wednesday, treading water around the upper end of the current range marginally below the 1.24 level. A break above it is needed for further bullish attempts while on the downside, significant local support arrives at 1.22. In a wider picture, the outlook for the pair remains neutral as long as prices stay below the key moving averages around 1.2650. In the 4-hour charts, cable is now stuck between the 50- and 200-SMAs and a break in either direction will set further tone for the pair. Once above 1.24, sterling may target the 1.2470 intermediate resistance.
USDJPY is flat around 108.75 after failed attempts to hold above 109.00 since the start of the week. The pair has settled between the key moving averages and could spend some time in a consolidative mode now, as the dollar looks directionless at this stage. The daily RSI is neutral, suggesting a decisive break in either direction is not expected in the short term. In the hourly timeframes, the technical picture has deteriorated somewhat, pointing to downside risks in the immediate term, especially if the 100-SMA gives up in the coming hours.
USDCHF failed to confirm a recovery above 0.97 earlier in the day and remains nearly flat marginally below this level. The pair retreated substantially yesterday and struggles to regain the upside momentum after partial profit-taking. A daily close below the mentioned level will act as a bearish signal for the greenback. Still, as the daily RSI doesn’t show any negative signals, it is possible that the prices will refrain from deeper losses and may finally regain the 0.97 handle should the 50-DMA act as strong support.
USDCAD has been trading marginally higher above the 1.40 handle after a two-day decline. Despite the current recovery attempts, the upside momentum is clearly limited, and the daily RSI is showing a very modest bullish bias, suggesting the rebound will likely be unsustainable. On the upside, the dollar needs to clear the 1.42 figure so that to see a more robust recovery toward the 1.45 barrier. In the four-hour timeframes, the prices are no stuck between the 100- and 200-SMAs, suggesting the volatility will remain subdued, at least in the near term.