EURUSD failed to confirm a break above the 50-DMA and declined aggressively from two-week tops marginally below 1.10. as a result of a bearish correction, the common currency plunged to 1.0855 and stays below 1.09. the daily RSI has reversed south, suggesting further losses may lie ahead in the short term. in a wider picture, the pair remains under the three key moving averages that act as resistance levels, so bearish risks continue to persist despite the recent rally from the local lows below 1.08. on the four-hour timeframes, the technical picture has deteriorated since the euro dipped under the 100- and 50-SMAs.
GBPUSD was rejected from the 200-DMA earlier in the day and dipped under the 1.25 figure. The pair extended losses to the 1.2435 area and have settled closer to the lower end of the range for since then. During the bearish correction, the cable dipped under the 50-DMA that has now turned into resistance again. As long as the prices remain below this level, downside risks will likely persist. In the four-hour timeframes, the pound may derive support from the 50- and 200-SMAs around 1.24 should the selling pressure persist.
USDJPY turned positive for the first time in over a week. The pair recouped yesterday’s losses and climbed back to the 107.85 area. Despite the bounce, the upside potential looks limited as there are strong resistance levels on the way north in the form of the key moving averages. The first one arrives at 108.30, where the 200-DMA arrives. To reach this level, the greenback needs to overcome the 108.30 handle first. The daily RSI is slightly bullish but the bias is too unconvincing to call a bottom and bet on further gains in the near term.
The Kiwi plunged aggressively following a series of gains witnessed since April 4. Now, the pair dipped to the 0.5960 area and shows no signs of a recovery so far. Yesterday, NZDUSD came close to the 50-DMA that acted as a local resistance and triggered massive profit-taking amid broad-based dollar strength. As a result, the daily RSI has reversed to the downside and remains in the neutral territory, suggesting there is still room for further losses, at least in the short term. Meanwhile, the prices have settled around the 100-SMA in the four-hour charts, and this area may act as support now.
USDCAD rallied strongly on Wednesday after four consecutive days of a gradual and modest decline. As a result, the pair bounced abruptly from late-March lows and regained the 1.40 figure. Moreover, the dollar briefly jumped above 1.41 but failed to confirm a breakout and trimmed gains partially. Nevertheless, the pair remains firmly in the positive territory on the daily charts and may accelerate the ascent should the 1.4050 area withstand the local pressure. The daily RSI turned strongly bullish, suggesting further gains may be ahead after a pause.