USDJPY accelerated the accent and turned the 20-DMA back into support
EURUSD has settled just above 1.18 after a rejection from intraday highs around 1.1840 earlier in the day. The pair is trying to regain the upside momentum following the recent correction from fresh two-year highs around 1.1965. However, the euro lacks the bullish potential to get back to the mentioned tips as traders turned more cautious after the rally faded as the prices were approaching the 1.20 psychological level. On the four-hour timeframes, EURUSD trimmed intraday gains as the bulls gave up just ahead of the 50-SMA. As a result, the common currency retreated below the 100-SMA which is a sign of its vulnerability.
GBPUSD regained the bullish bias following two days of a downside correction that took the prices to the 1.3050 area that capped the selling pressure. As a result, the cable bounced at this local support and regained the 1.31 level. However, the upside momentum looks indecisive, and the pound is yet to confirm the breakout on a daily closing basis. In the short-term charts, the pair is stuck around the 100- and 200-hourly SMAs that converge in the 1.3130 area. The pair needs to turn this moving average into resistance in order to avoid another profit-taking in the near term.
USDJPY accelerated the accent and turned the 20-DMA back into support today. In recent trading, the pair climbed to one-week highs around the 106.50 intermediate resistance. A break above this level could open the way to the 107.00 handle where the 100-DMA lies. However, a more aggressive ascent looks unlikely at this stage as the greenback remains fragile and vulnerable to a number of risks. On the downside, the key support arrives at 106.00, with the 20-DMA lying just below this level. On the four-hour timeframes, the technical picture has improved further after the recent break above the 200-SMA.
Gold prices have been trading with a bearish bias for the third day in a row on Tuesday. The precious metal is on the defensive these days but the downside potential looks limited at least as long as the prices stay above the $1,900 figure. The immediate resistance now arrives at $1,940, followed by the $1,960 area. A sustainable recovery above the latter could pave the way to the $2,000. However, the metal will need to see the renewed risk aversion in order to stage a reversal. So far, as positive risk sentiment prevails in the global financial markets, the path of least resistance for the bullion is to the downside. In a wider picture, the yellow metal remains within a longer-term bullish trend.
The cross failed to confirm a break above the 50-DMA yesterday and reversed lower after a two-day recovery. As a result, the euro dipped below the 0.90 psychological level which is a bearish sign, suggesting further losses could lie ahead in the short term. On the other hand, the daily RSI looks nearly neutral, which implies some consolidation around the current levels may take place before the pair decides on the further direction. As of writing, EURGBP was changing hands just below the 0.90 handle. if the selling pressure intensifies, the next support in the form of the 100-DMA will come back into market focus. This moving average that arrives around 0.8935 capped the downside pressure late last week and triggered an impressive bounce.