EURUSD has accelerated the ascent after some consolidation earlier in the day. The pair remains above the 1.08 figure but it is yet to make a decisive break above the 1.09 barrier to stage a more decisive rebound following the recent sell-off. Once firmly above 1.0870, the common currency will face another intermediate resistance of 1.0875. The daily RSI has turned slightly higher today but the bias is too modest to bet on more decisive gains in the short term. On the downside, meaningful support arrives at 1.0780. As long as the pair remains above this level, the bearish potential in the pair is limited.
GBPUSD continues to challenge the 50-DMA around 1.2360. Despite a bullish bias on the intraday timeframes, the pair remains in a consolidative mode, with near-term risks are still skewed to the downside as long as the prices stay below at least 1.25. Once above, there are a few resistance levels in the form of the 100- and 200-DMAs around 1.27. In a wider picture, the pound is far off March highs at 1.32, and the technical picture on the weekly charts remains bearish as long as GBPUSD stays below the 50-SMA around 1.2640. If the cable fails to stage a sustainable recovery above 1.24 in the days to come, the sellers may reenter the market and send the prices back under 1.23.
USDJPY is trading marginally lower on Tuesday after a rally witnessed yesterday. The pair was rejected from the 107.70 region and retreated slightly but remains above the 107.00 handle. On the daily timeframes, the dollar is now stuck between the 20- and 200-DMAs, and the short-term technical outlook remains neutral for the time being despite the daily RSI turned slightly bearish. On the four-hour charts, the pair’s upside potential is capped by the 200-SMA. The recent failed attempts to break above this moving average confirm that the bullish momentum in the pair is fragile and unsustainable.
The cross has been rising for the fourth day in a row. Today, EURJPY has settled around 116.80 local highs that capped the upside momentum on Monday. Another failure to challenge this area may attract profit-taking in the short term. If so, the euro could slip back below the 116.00 handle. on the four-hour charts, the technical picture looks fairly upbeat as the prices have settled above the 50- and 100-SMAs recently. If the cross manages to hold at least around the current levels, it could make another attempt to challenge the above-mentioned resistance. However, it looks like the common currency will need the additional catalyst to make a decisive break above this barrier.
USDCHF remains stuck between the 50- and 100-DMAs since last week. A few days ago, the bullish attempts were capped marginally below the 0.98 handle which remains the key hurdle for bulls. On the downside, the pair needs to cling to the 0.97 figure in order to avoid deeper losses towards the 0.9650 (50-DMA) handle and lower. The daily RSI is pointing slightly downwards, suggesting the path of least resistance is to the downside for the time being. In the four-hour charts, the greenback is challenging the 50-SMA, a break below which will clear the way toward 0.9680.