EURUSD ended Monday with marginal losses and remains under some pressure today. The pair struggles to regain the upside momentum following a rejection from fresh two-year highs last week. On Tuesday, the common currency has settled around 1.1750, refraining from a deeper correction. As the euro holds above the 1.17 handle that offers support to the pair, the prices could resume the rally after the current consolidation. However, the euro could see a deeper downside correction before demand picks up again. The initial resistance now arrives at 1.18.
GBPUSD dipped under the 1.30 handle for the first time this month on Tuesday. The selling pressure surrounding the cable has intensified recently as dollar demand picked up after a pause. Now, as the mentioned psychological level turned into resistance, the short-term technical picture could deteriorate further in the short term. As a result of the recent sell-off, the daily RSI reversed lower and exited the overbought territory. However, the pair may see a more aggressive downside correction before buyers reemerge. The next significant target for bears arrives at 1.29 where the 200-weekly MA lies.
USDJPY is flirting with the 106.00 figure on Tuesday. The pair staged a strong recovery from March lows late last week and remains on the offensive since then. However, the pair lacks momentum to see a more sustainable upside correction as the greenback is being capped by the 20-DMA that acts as a strong local resistance marginally below 106.50. As long as the prices remain below this level, the upside potential is limited. In the four-hour timeframes, the greenback is stuck between the 20- and 100-SMAs. However, as the prices are clinging to the higher end of this short-term range, it looks like the prices will at least preserve the upside bias in the immediate term.
USDCHF managed to trim earlier losses but remains in the red on the daily charts. The dollar failed to stage a daily close above the 0.92 figure yesterday and has been struggling to regain the upside bias since then. However, downside risks are looking limited as well, especially as the daily RSI is directionless marginally above the 30 mark. In a wider picture, the pair remains within a bearish trend that could be eroded once the greenback climbs above the 50-DMA around 0.9425. The pair last traded above this level in late-May.
The cross caught a lift as the sterling is the weakest currency in today’s trading. The pair climbed back above 0.90 and regained the 50-DMA in the process. Now, the euro needs to see a daily close above this moving average that arrives at 0.9012 in order to confirm the latest breakout. The prices registered intraday highs around 0.9040, where the immediate resistance arrives. A break above this level could open the way towards 0.9060. On the downside, the mentioned 0.90 handle now acts as support. In the four-hour timeframes, EURGBP is targeting the 200-SMA that could cap the bullish momentum in the short term.