EURUSD plunged to one-month lows around 1.0755 earlier in the day but managed to trim losses to the 1.08 handle. A daily close below this level will confirm the recent breakdown and could lead to further losses. On the other hand, the daily RSI shows only a slight bearish bias, suggesting downside risks are limited. In the weekly timeframes, the technical picture continues to deteriorate, and it looks like the common currency will struggle to climb back above the 1.10 figure, at least in the short term. Should the above-mentioned lows give up, the pair will target the 1.07 handle for the first time since March 23.
GBPUSD is trading flat on Thursday after slight gains witnessed yesterday. The pair struggles to get back above 1.24 but remains above 1.23 at the same time. As the prices stay below the key moving averages, with the 50-DMA showing a mild bearish bias, it looks like the cable may come under the selling pressure in the short term. If so, the pound will easily get below 1.23 and may target 1.2250 after a break under 1.2270. On the four-hour timeframes, GBPUSD is stuck between the 100- and 200-SMAs that are acting as the immediate resistance and support levels, respectively.
USDJPY continues to tread water below the 108.00 figure, staying under the key moving averages. The technical picture remains the same for more than one week already, and it looks like the pair will stay in a consolidation mode for some time. The flat daily RSI is also pointing to a neutral technical picture. Even in the weekly charts, the RSI doesn’t shoe any signals. As a rule, after a prolonged volatility period, a breakthrough occurs, so the greenback may briefly rise above 108.00 or plunge below 107.00, where the 106.80 area acts as important support. On the upside, the intermediate resistance arrives at 108.30, where the 200-DMA lies.
NZDUSD turned higher on Thursday after yesterday’s consolidation. The pair climbed back above 0.60 but is yet to confirm a break above this important handle on a daily closing basis. Otherwise, the kiwi may resume the decline as the current bullish attempts are looking unconvincing at this stage and the bias seems to be unsustainable. On the other hand, the daily RSI is now pointing upwards in the neutral territory, suggesting further gains may lie ahead. If so, the important resistance is expected to cap the upside potential around the 50-DMA that lies marginally below the 0.61 figure.
USDCHF rose to nearly three-week highs around 0.9770 earlier in the day but failed to preserve gains as traders proceeded to profit-taking following a local rally. As a result, the pair retreated and has settled just around the opening levels. Once below 0.97, the dollar could suffer further losses. On the downside, fairly strong support arrives at 0.9660, where the 50-DMA lies. once below, market focus will shift towards 0.96. The RSI in the short-term charts is pointing downwards, suggesting the selling pressure will reemerge in the near term and send the greenback lower.