EURUSD
On Monday, the euro made bullish attempts marginally below the 1.13 barrier but failed to preserve the upside momentum and has been correction lower since its rejection from local highs. On Tuesday, the pair briefly dipped below 1.12 but has trimmed intraday losses since then, having settled above this key level. Still, the daily RSI is nearly flat, suggesting the common currency may switch into a recovery mode if the mentioned handle withstands the bearish pressure. On the hourly charts, the technical picture is gradually improving, also pointing to the receding bearish risks.
GBPUSD
GBPUSD remains on the defensive since its rejection from the 1.2540 area last week. Earlier in the day, the pair neared yesterday’s one-month lows below 1.23 but managed to reverse losses and turned flat around this level. Despite a bounce, cable remains vulnerable to further losses at least in the short term, especially as the prices have been below the 50-DMA since the start of the week. On the positive side, the daily RSI is turning flat, suggesting the selling pressure may be easing now. Anyway, a daily close above 1.2340 is needed for a confirmation of a local reversal. Otherwise, the pound could register fresh four-week lows in the days to come.
USDJPY
USDJPY extends gains for the fifth consecutive day on Tuesday. The pair has exceeded the 20-DMA that turned into support, suggesting the bullishness could persist in the short term. On the other hand, the dollar is nearing the 100-DMA that could act as a stronger resistance marginally below 108.00 and trigger a downside correction. By the way, the daily RSI continues to point slightly upwards and remains far from the overbought levels which in turn signals that the greenback could retain its bullish bias so far. On the downside, the mentioned 20-DMA now acts as immediate support.
NZDUSD
The Kiwi dipped to one-week lows earlier in the day but has turned into recovery mode since then and regained the 0.64 handle in recent trading. Still, the pair remains in the red on the daily charts, with trading volumes being muted since late last week. A daily close above the mentioned level doesn’t guarantee a better short-term technical picture as the key immediate hurdle for bulls comes around 0.6450. As long as the pair remains below this barrier, downside risks persist. On the four-hour timeframes, the prices are still capped by the 50-SMA for nearly a week already, confirming a limited nature of the upside potential for the time being.
USDCAD
USDCAD turned marginally higher on Tuesday after a modest retreat seen yesterday. In general, the pair remains stuck in a tightening range these days, staying between the 100- and 200-DMAs since June 12. It looks like the dollar will stay in a consolidative mode in the near term unless a strong catalyst pushes the prices in either direction. On the upside, the pair needs to make a decisive break above the 1.37 immediate resistance to retarget the mentioned 100-DMA that now arrives just below 1.38. On the weekly timeframes, USDCAD remains flat but has room for further recovery from the 1.33 level seen earlier this month.
