EURUSD received support marginally above the 1.08 handle and staged a local reversal. The pair jumped to one-week highs around 1.0885 and is clinging to the upper end of the extended short-term range. Now, as the common currency is very close to the 1.09 handle, some traders may proceed to profit-taking and send the pair lower from the local tops. Moreover, the euro may need additional dollar weakness to make a decisive break above this psychological barrier. Should the European currency receive this impetus, the next resistance will arrive at 1.0950, where the 50-DMA lies.
GBPUSD has exceeded the 50-DMA for the first time since mid-April and is now challenging the 1.25 handle. Should the pair confirm a breakout on a daily closing basis, it will be a sign of a potential bullish continuation. Otherwise, profit-taking will likely take place in the short term. Of note, the daily RSI is pointing upwards but the bias is too modest and gradual to bet on sustainable gains from here. On the downside, the initial support now arrives at 1.2460, where the mentioned moving average lies. In the four-hour timeframes, the technical picture has improved substantially but the cable is yet to confirm a break above the 100- and 50-SMAs at 1.2415 and 1.24, respectively.
USDJPY dipped to March 17 lows, suffering losses for the fourth day in a row on Tuesday. The pair’s downside movement has accelerated after a break below the 107.00 handle. Should the dollar fail to cling to the current levels, the 106.00 figure may come back into market focus while on the upside, the 107.00 level now acts as resistance. The technical picture is looking even more bearish now as the pair remains below the key moving averages and has got back under an important intermediate support zone. The RSI in short-term charts is pointing south, suggesting the current retreat may continue for some time.
USDCHF climbed to 0.98 earlier in the day but was rejected from local highs and staged a strong reversal in the intraday charts. As a result, the pair slipped to 0.9725 and is no threatening the 0.97 figure as the selling pressure surrounding the greenback persists. Once below the 0.9710 intermediate support, the pair may target the 50-DMA around 0.9655. On the upside, the key resistance is still represented by the 200-DMA around 0.98. As long as the prices remain below this level, bearish risks persist. On the weekly timeframes, the upside potential remains limited by the 50-SMA for more than a month already.
USDCAD continues its retreat from the 1.4260 area on Tuesday. The pair has dipped below the 1.40 and registered mid-April lows around 1.3940. Should this region give up, the 1.39 level will come into bears’ focus. Despite the recent decline, the general tone in the pair remains neutral as long as prices stay above 100- and 200-DMAs at 1.3515 and 1.3370, respectively. In the four-hour timeframes, however, the RSI is pointing south, suggesting the downside pressure may persist in the near term. The immediate important resistance now arrives at 1.40.