EURUSD
EURUSD rallied to two-week highs around 1.0975 where the 100-DMA acted as a local resistance. As a result, the pair retreated partially but stays in the green on the daily timeframes. At the same time, the common currency is holding above the 50-DMA that comes around 1.09. The pair needs to cling to this level in case of a deeper downside correction in order to avoid a more aggressive retreat in the short term. On the upside, the prices need to confirm a break above 1.0950 so that to regain the 1.10 handle in the days to come. In the immediate term, the euro may append some time in a consolidative mode before it decides on further direction.
GBPUSD
GBPUSD remains on the offensive since Monday but the pair’s upside momentum has slowed during the recent trading. Cable climbed to the 1.2270 area and was rejected from the intraday highs. Now, the pair needs to confirm a recovery above 1.22 in order to preserve its bullish bias and extend the ascent in the short term. On the upside, the immediate hurdle for bulls arrives at 1.2290 where the 50-DMA lies. Once above, the pound may target the 1.2340 region. If the current bounce wanes any time soon, GBPUSD may retarget 1.20 after a break below the 1.2180 local support zone.
USDJPY
USDJPY has accelerated its rally on Tuesday, with the dollar challenging the 108.00 handle. If the current bullish attempts are successful, the pair will target the 200- and 100-DMAs around 108.25-108.45. This area may act as a hurdle for bulls, as the greenback will likely need the additional impetus to overcome this upside hurdle. In case of a retreat from the levels above 108.00, or from the current prices, the pair will first target the 106.70 region. The daily RSI on the daily timeframes is pointing upwards, suggesting the dollar may preserve its bullish bias, at least in the short term.
USDCAD
USDCAD plunged yesterday and remains under the selling pressure on Tuesday. The pair dipped to one-week lows around the 1.39 handle, a break below which will signal further deterioration in the near-term technical picture for the dollar. Furthermore, the pair has already given up last week’s gains since Monday, and it looks like the selling pressure will intensify if the 1.39 support gives up. If so, USDCAD could extend losses to the 1.3850 region where late-April lows arrive. On the four-hour timeframes, the pair is currently changing hands at a critical level, as below, the RSI will enter the oversold territory.
AUDUSD
The Aussie retains its bullish bias after a decent rally witnessed yesterday. As a result, the 100-DMA turned into support but the Australian currency is yet to confirm a break above this barrier on a daily closing basis. The pair extended gains to late-April highs around 0.6560 today, where the upside momentum has stalled so far. If the prices fail to exceed this barrier in the near term, a downside correction may occur. In this scenario, AUDUSD will get back below the mentioned moving average and will challenge the 0.65 figure.
