The U.S. dollar lost strength amid expectations that the Federal Reserve would cut interest rates soon. The ICE dollar index eased less than 0.1% to 96.71.
The British pound rebounded 0.3% to $1.2719. Official data showed that U.K. jobless rate stayed at 3.8% in the three months to April (as expected).
USD/JPY edged up to 108.51 (day-high at 108.80) from 108.44 in the prior session.
The Australian dollar still lacked upward momentum closing at $0.6961, while USD/CAD was up for a second day gaining 0.1% to 1.3283.
USD/JPY Intraday: Under pressure. The pair, as shown on a 30-minute chart, stays on the downside after retreating from a high of 108.80 seen yesterday. The 20-period moving average has crossed below the 50-period one, helping to maintain the bearish intraday outlook. A pull-back to the immediate support (first downside target) at 108.40 would open a path toward 108.15 on the downside. Only a return to the key resistance at 108.65 would open a path toward 108.80 on the upside.
EUR/USD Intraday: Further advance. The pair keeps trading on the upside while being supported by the ascending 20-period moving average, which stands above the 50-period one. Upward momentum is evidenced by the relative strength index, which is well directed in the 60s. Trading at levels above the key support at 1.1310, the pair stands higher chances of reaching 1.1345 and 1.1360 on the upside. Alternatively, breaking below 1.1310 would trigger a further drop toward 1.1300 on the downside.
AUD/USD Intraday: Watch 0.6935 downside. The pair has failed to post a sustainable rebound while testing the immediate support (first downside target) at 0.6950. A lack of upward momentum is also evidenced by the relative strength index, which remains subdued below the neutrality level of 50. Unless the key resistance at 0.6970 is surpassed, the pair is likely to pull back to 0.6950 and 0.6935 on the downside. Alternatively, above 0.6970, expect a further advance toward 0.6980 on the upside.
NZD/USD intraday: Bullish bias above 0.6566. The pair is rebounding and is challenging the 20-period moving average. The relative strength index is around its neutrality level at 50, showing the lack of downward momentum for the prices. Hence, as long as 0.6566 is not broken, intraday bullish bias remains with up targets at 0.6609 and 0.6621 in extension. Alternatively, a break below 0.6566 would trigger a drop with 0.6545 as a target.
GBP/USD Intraday: Upside prevails. The pair has recorded a series of higher tops and higher bottoms, indicating a bullish outlook. Both rising 20-period and 50-period moving averages are playing support roles. The relative strength index is above its neutrality level at 50. To conclude, above 1.2705, look for a rise to 1.2735 before targeting to 1.2760 in extension. Alternatively, crossing below 1.2705 would bring return with 1.2690 and 1.2670 as targets.
USD/CHF Intraday: Bullish bias remains. The pair posted a rebound from 0.9905 after touching the rising 50-period moving averages. Currently, the pair has just crossed above the 20-period moving average. The relative strength index advocates for further upside. To sum up, as long as 0.9905 holds on the downside, a further upside to 0.9935 and even to 0.9950 seems more likely occur. Alternatively, below 0.9905, expect a pullback with 0.9885 and 0.9870 as targets.
USD/CAD Intraday: Rebound expected. Although the pair posted a pullback from 1.3310, it is still trading above the rising 50-period moving average. The relative strength index is locating at the buying zone between 50 and 70, confirming a positive outlook. The downside potential should be limited by the key support level at 1.3265. Hence, as long as this key level is not broken, look for a rebound with targets at 1.3295 and 1.3310 in extension. Alternatively, breaking below 1.3265 would open a path to 1.3245 and 1.3230 on the downside.
EUR/JPY intraday: Turning down. The pair retreated below the key resistance level at 123.28. The relative strength index posts a bearish divergence signal, suggesting the loss of upward momentum for the prices. The 20-period moving average is also turning downward. In this case, as long as 123.28 is not surpassed, look for a drop with targets at 122.44 and 122.20 in extension. Alternatively, breaking above 123.28 would call for a new challenge with 123.68 as a target.
EUR/GBP intraday: intraday support at 0.8876. Despite the recent pullback, the pair is still trading above the key support level at 0.8876, which should limit the downside potential. Even though a continuation of consolidation cannot be ruled out, its extent should be limited. Therefore, as long as 0.8876 is not broken, intraday positive outlook remains with up targets at 0.8945 and 0.8965 in extension. Alternatively, only a break below 0.8876 would turn the outlook to negative and call for another drop with 0.8842 as a target.
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