EURUSD is showing a modest upside bias on Wednesday, still being confined in a tight range below the 1.09 level that remains the initial resistance. The pair is trapped in a 40-pips channel amid quiet trading. On the downside, the immediate support lies around 1.0840. A break below it will send the prices to 1.08 if dollar demand reemerges any time soon. The daily RSI remains neutral, suggesting the common currency will remain in consolidation mode in the near term. In a wider picture, the pair looks bearish as long as the prices stay below the 50-SMA on the weekly charts. On the hourly charts, there are some bullish signs but the impetus is too modest to call a local bottom at this stage.
GBPUSD turned positive after two days of losses and reclaimed the 1.23 handle as support. The pair has encountered resistance around 1.2385 and thus failed to challenge the 1.24 figure. Despite the current bullish bias, it looks like the way north will be hard enough, as after a possible rise above 1.24, the cable will face another strong resistance in the form of the 50-DMA just above 1.25. The daily RSI is now pointing upwards, suggesting the pound may at least stay around the current levels and confirm a break above 1.23 on a daily closing basis.
USDJPY still struggles to regain the 108.00 barrier, remaining below the key moving averages. The downside pressure is capped by the 107.50 area but bearish risks persist as long as the dollar stays under the mentioned local resistance. Should the prices retreat below 107.50, the pair may dip to the 109.90 area that in turn may open the way to one-month lows. In the four-hour charts, USDJPY is challenging the 200-SMA. A decisive break above this level will open the way toward 108.00. The RSI in the short-term timeframes is pointing upwards, suggesting the pair may retain a modest bullish bias today.
The cross is gradually continuing its recovery after yesterday’s brief plunge to early-March lows around 116.20. The pair has regained the 117.00 handle on Wednesday but is yet to confirm a breakout on a daily closing basis. Further upside will likely be limited, considering the indecisive and inconsistent momentum. The туче bullish target arrives at 117.50 while on the downside, the 116.50 area comes as the intermediate support. In the weekly charts, the euro remains close to September 2019 lows and shows little signs of a sustainable recovery.
USDCAD is back under the downside pressure after two days of gains. The pair was rejected around 1.4260 on Tuesday and retreated to the 1.4110 region. As the daily RSI has reversed south, it is possible that the dollar will extend losses in the near term. in the four-hour timeframes, important support arrives around 1.4070, where the 100- and 200-SMAs converge, suggesting the potential selling pressure could wane in this area. For now, USDCAD needs to hold above 1.41 so that to avoid deeper losses.