EURUSD encountered resistance at the September 2018 highs around 1.1780 yesterday and has been correcting lower since then. The pair retreated from peaks but managed to hold above the 1.17 handle, suggesting the downside risks are limited at this stage, and the euro may resume the ascent after some consolidation at the current or lower levels. On the downside, a break below 1.17 could open the way towards 1.1650 while more significant support arrives at 1.15. for now, it looks like the common currency will challenge the 1.18 barrier after a pause.
GBPUSD refreshed March 11 highs marginally above the 1.29 handle on Tuesday but failed to confirm a break above this level once again and corrected slightly lower. On the downside, the 1.2840 area acted as the intermediate support that capped the selling pressure. As a result, the pair trimmed intraday losses and turned nearly flat. The daily RSI has entered the overbought territory and doesn’t show a bullish bias any longer, suggesting the cable is losing its upside momentum and could stage a more pronounced downside correction in the short term. On the other hand, a decisive break above 1.29 will open the way to fresh multi-week highs.
USDJPY tried to stage a bounce from lows earlier in the day but recovery attempts faded around 105.70. The pair was rejected from this intermediate resistance and turned marginally lower on the day. As such, the selling pressure remains and could send the prices to 105.00 in the near future if recovery attempts stay shallow. Once below this significant support, the dollar may dip towards the 104.50 area in the days to come. On the hourly charts, USDJPY is challenging the 20-SMA that acts as the immediate resistance around 105.40. A decisive break above this moving average could open the way towards 106.00. However, it looks like the path of least resistance is to the downside at this stage.
USDCAD extended losses to June 10 lows earlier in the day but managed to bounce sharply afterwards. As a result, the pair turned positive on the day and climbed back to the 1.34 area from 1.3330. Meanwhile, the daily RSI reversed north around 30 and points higher. However, as long as the prices remain below the 200-DMA around 1.2515, downside risks persist despite the recent bounce. On the four-hour timeframes, the technical picture has improved somehow in recent trading but stays bearish in general, confirming the persisting downside risks for the dollar.
XAUUSD climbed to fresh all-time highs around $1,980 and was rejected strongly from new tops amid massive profit-taking that took gold prices below $1,907. However, the bullion has trimmed intraday losses since then and has settled marginally below $1,930. The precious metal remains within a strong bullish trend despite a local downside correction, so the prices could resume the ascent after the current hesitation around the mentioned levels. In a wider picture, the key target for bulls arrives at $2,000. On the downside, the $1,900 level represents the immediate significant support.