The dollar stayed nearly unfazed by stronger-than-expected economic data out of the US. Durable Goods Orders expanded by 19% on a monthly basis in September, well above the 0.5% rise anticipated and the 0.4% growth recorded in the previous month. Excluding transportation, new orders increased by 0.8% as against 0.4% anticipated. However, the upbeat results failed to impress the dollar bulls, with the USD index remaining below the 93.00 handle following the release.
EURUSD climbed to fresh intraday highs in recent trading but refrained from a recovery above the 1.1840 region. Earlier in the day, the pair derived support from the 1.18 figure and managed to stage a bounce after a sell-off seen on Monday. Despite the bullish bias in the intraday charts, the upside potential surrounding the common currency looks limited as the risk-off tone dominates the markets. In the immediate term, the pair needs to overcome the 1.1850 intermediate resistance in order to retarget the 1.19 barrier.
GBPUSD is marginally higher on the day, continuing to derive support from the ascending 20-DMA. The pair regained a bullish bias after three days of losses and remains vulnerable as the recovery momentum looks too modest to bet on more sustained gains in the short term despite a broad-based weakness in the greenback. As of writing, the cable was changing hands around 1.3045 after a bounce from the 1.30 psychological handle earlier in the day. On the upside, the pound needs to make a decisive break above the 1.3080 intermediate resistance in order to see a more robust recovery from the mentioned moving average. On the four-hourly charts, the pair looks nearly directionless, being capped by the 20-SMA on the upside.
USDJPY is back under the selling pressure after failed attempts to break above the 105.00 handle on Monday. The pair is holding above the 104.50 area, a break below which will mark further deterioration in the short-term technical outlook for the dollar. Furthermore, the prices are well below the 20-DMA that acts as the key hurdle for bulls. The RSI both in the shorter-term and daily timeframes is pointing downwards but is yet to enter the oversold territory, suggesting there is more room to the downside in the near term. if so, USDJPY could extend losses to the 104.30 area or even to the 104.00 handle that should act as support and trigger a bounce amid oversold conditions.
USDCHF rose briefly to one-week highs just below the 0.91 handle earlier in the day but failed to preserve a bullish bias and retreated. As of writing, the pair was changing hands at 0.9073, unchanged for the day. It looks like the prices will remain directionless as long as the dollar stays in the 0.9030-0.9100 range, with downside risks prevailing as there is strong resistance in the form of the descending 20-DMA on the upside. The daily RSI looks directional in the neutral territory as well, suggesting the current consolidation could continue in the short term.
USDCAD was rejected from 10-day highs around 1.3225 on Monday and has got back under the 1.32 handle since then. Despite the retreat, the bearish potential looks limited as long as the dollar stays above 1.3150. However, USDCAD continues to look bearish in a wider picture, extending the decline from the peaks around 1.3420 since late-September. In the short term, the pair needs to get back above the 20-DMA (around 1.32 today) in order to make fresh bullish attempts. However, as the daily RSI is pointing downwards in the neutral territory, it looks like the greenback will stay on the defensive so far.