bounced from intraday lows around 1.1240 and shifted into a recovery mode afterwards. As a result of a bounce, the pair got back above the 1.13 barrier but stayed shy of recent highs registered marginally below 1.14 late last week. It looks like traders are ready to push the euro north again after a mild correction. If so, the prices may challenge the 1.14 barrier in the days to come. On the downside, the common currency needs to hold above the 1.12 level in order to avoid deeper losses this week.
GBPUSD dived under the 200-DMA earlier in the day, sinking from fresh three-month highs around 1.2755 registered at the start of the trading day. But the pair managed to quickly recover above the 100-hour SMA and extended the bounce to the 50-SMA in recent trading. As a result, the cable trimmed intraday losses but failed to regain the 1.27 handle. Still, despite the current retreat, the overall technical picture remains bullish as long as the prices stay above the 100-DMA around 1.2550. On the weekly timeframes, the 100-SMA acts as the key resistance that could prevent the pound from a fresh breakout.
USDJPY dipped under the 100- and 200-DMAs and derived intraday support from the 20-DMA earlier in the day. Despite the selling pressure has eased somehow since then, the greenback struggles to regain the 108.00 figure which is the key level to recover above in order to resume the recent ascent. Otherwise, the downside pressure may intensify in the short term. In this scenario, a decline towards 107.50 could be expected. On the upside, a decisive break above 108.00 will bring the 108.40 region back in focus. Above this level, the 20-SMA on the four-hour chart lies.
The cross extends the retreat from nearly two-year highs around 124.40 for the third day in a row. Today, the euro dipped to 121.30 but managed to bounce to the 122.00 area afterwards. The current bearish correction looks reasonable as the common currency looked overbought at the mentioned long-term highs. Despite the retreat, the overall technical picture remains bullish, especially as the prices stay well above the key moving averages. A daily close above 122.00 will confirm the euro’s long-term bullishness. Meanwhile, on the weekly timeframes, the pair is yet to recoup the recent losses to target fresh highs following a downside correction.
USDCHF accelerated its downside move on Tuesday after yesterday’s rejection from the 0.9640 area. The pair dipped to late-March lows below 0.9530, now threatening the 0.95 handle. As a result, the daily RSI turned even more negative but remained in neutral territory, suggesting there is still room for the downside before a possible reversal takes place. On the four-hour timeframes, the technical picture continues to deteriorate since June 6, when the prices dipped below the 50-SMA. In case of a recovery, the dollar will face the initial resistance around 0.9550.
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