The Kiwi came under renewed selling pressure after failed attempts to recover above the 20-DMA
EURUSD is back above the 1.18 handle for the first time in a week on Tuesday. The pair bounced from the 1.1760 area and climbed to the 1.1820 region in recent trading. However, the common currency is yet to confirm the latest bullish breakout on a daily closing basis as the upside momentum still looks fragile despite the ascent from below the 20-DMA. On the hourly timeframes, the RSI is flirting with the overbought territory, suggesting the upside momentum could be exhausted soon. If so, the pair will likely fall back under the 1.18 figure by the end of the trading day. On the upside, the next hurdle for bulls arrives at 1.1830.
GBPUSD was rejected from the levels above the 1.30 handle yesterday and came under some pressure on Tuesday. Despite the retreat, the pound stays above the 20-DMA that acts as the immediate support around 1.29. As the daily RSI looks neutral, it looks like the cable could resume its bullish attempts after the current consolidation with a mild bearish bias. In this scenario, the pound could retest the 1.2980 intermediate resistance that stands on the way toward the mentioned psychological level that remains the key short-term obstacle for bulls. On the four-hour charts, the cable dipped below the key moving averages in recent trading, suggesting the downside pressure could persist in the immediate term.
USDJPY has accelerated the recovery on Tuesday amid positive risk sentiment that caps the safe-haven yen demand. The pair climbed to the 105.75 area, staying elevated above the 20-DMA. The dollar needs to stage a daily close above this moving average to retain the current bullish tone. In a wider picture, however, the upside potential in the greenback looks limited, with bearish risks could reemerge after a short-lived recovery. The daily RSI has reversed north but the bias is too modest so fat to bet on further gains. In case of a retreat, the immediate support is expected at 105.50 where the 20-DMA arrives.
The Kiwi came under renewed selling pressure after failed attempts to recover above the 20-DMA. As a result, the pair plunged below the 100-daily moving average which is a strong bearish sign as this MA acted as support since late-May. In recent trading, NZDUSD came across the 0.6550 area that could cap the bearish pressure in the short term. Otherwise, the prices could target the 0.65 handle and suffer even deeper losses. On the hourly charts, the New Zealand dollar is now well below the key moving averages, suggesting the pair could stay on the defensive in the near term. On the upside, the immediate resistance now arrives at 0.6570, followed by the 0.66 figure.
The cross jumped to nearly two-week highs on Tuesday as the euro surged across the board. EURGBP bounced from the 20-DMA and rallied to the 0.9140 area in recent trading. The pair retains its bullish tone ahead of the opening bell on Wall Street, suggesting the common currency could extend the current ascent in the short term before a bearish correction takes place. The 20-DMA now arrives marginally below the 0.91 handle. A daily close above this level could be a confirmation of the latest breakout. Also, this moving average now acts as the immediate support for the first time since late-September. On the four-hour charts, the RSI is yet to enter the overbought territory, which implies that further gains could lie ahead.