EURUSD extends the rally for the sixth day in a row on Tuesday. The euro registered fresh mid-March highs marginally below the 1.12 handle and retains a bullish bias despite the recent pullback. The pair may accelerate the rally if this barrier gives up in the short term. However, as the daily RSI is nearing the overbought territory, the common currency may see a bearish correction before buyers reenter the market at more attractive levels. In this scenario, the initial support will arrive at 1.1150. as long as the prices stay above this level, the bullish tone remains in place.
GBPUSD rallied to the 100-DMA after yesterday’s break above the 1.25 handle. The pound climbed to one-month highs around 1.2575 but has retreated partially since then as the pair encountered resistance around the mentioned moving average that could cap the rally in the short term. On the downside, should the cable fail to hold above 1.25, the next support around 1.2480 will come into market focus. On the other hand, the daily RSI continues to point upwards and hasn’t entered the overbought territory just yet, suggesting further gains could lie ahead.
USDJPY has finally begun to show signs of a breakout from the familiar range. The pair jumped to the 108.45 area where the 100- and 200-DMAs converge, representing a fairly strong resistance zone. A break above this area will mark a long-awaited breakout. However, it looks like the dollar may lack the upside momentum to challenge this level and confirm the break on a daily closing basis. If so, the prices may retreat below the 108.00 handle. On the four-hour timeframes, the pair has settled above the key moving averages, suggesting the dollar will retain a bullish tone, at least in the near term.
The cross has accelerated its rally on Tuesday. As a result, the euro registered late-March highs just above the 121.00 handle. However, the pair is yet to confirm the latest breakout on a daily closing basis. So far, this level continues to act as the immediate resistance level. Furthermore, the daily RSI is pointing upwards but has entered the overbought territory in recent trading, which means further upside impetus could be limited. In other words, there is a high possibility of a downside correction from the current levels. In this scenario, the prices will first target the 120.50 region.
The Kiwi has challenged the 200-DMA for the first time in four months today. The pair climbed to 0.6326 and remains around the higher end of the extended range, preparing to stage another bullish close on a daily basis. The New Zealand dollar bounced from the 100-DMA at the start of the week and retains a strong bullish tone since then. If the buying pressure persists in the near term, the prices may confirm a break above the 200-DMA and thus extend the rally to the 0.6360 area. A daily close above 0.63 will act as the sign of the potential bullish continuation in the near term.
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