USDJPY marginally lower on the day, consolidating yesterday’s gains that took the prices above 105.50
EURUSD
EURUSD struggled to regain upside momentum after a strong rejection from the levels above 1.19 seen yesterday. The pair has settled around the 1.18 handle, 0.08% lower on the day. A daily close below this level could pave the way towards the 20-DMA that has been acting as support so far. It also looks like the common currency may need the additional catalyst in order to retest the 1.19 barrier last seen two months ago. This level has been capping the upside potential since early-September and will likely continue to act as resistance so far. On the hourly charts, EURUSD was rejected by the 20- and 100-DMAs, adding to the downside pressure in the short-term.
GBPUSD climbed to early-September highs around 1.3270 in recent trading and stayed buoyed despite a partial retreat. A daily close above the 1.32 handle would be a confirmation of the latest bullish breakout while the daily RSI looks directionless, suggesting the prices could struggle to post fresh medium-term highs in the short term. On the four-hour timeframes, the cable has been following the ascending 20-SMA since the start of November. As long as the pair stays above this moving average (today at 1.3150), downside risks are limited. However, as the RSI is starting to signal the overbought conditions, bullish continuation looks unlikely in the immediate term.
USDJPY
USDJPY is marginally lower on the day, consolidating yesterday’s gains that took the prices above 105.50. Earlier in the day, the pair derived support from the 20-DMA that arrives at 104.70 today. As long as the greenback stays above this level, the short-term technical picture remains positive. For a bullish continuation, the pair needs to firmly reclaim the 105.00 handle as support on a daily closing basis. If so, USDJPY could challenge the 105.65 area and confirm its bullishness. The daily RSI is pointing slightly lower in the neutral territory, suggesting the dollar is not ready for further gains at this stage. If the pair fails to hold above the mentioned moving average, the market focus will shift back to the 104.00 handle.
The Kiwi continues the ascent for the seventh day in a row on Tuesday. The pair peaked at 0.6854 (March 2019 highs) yesterday and stays slightly off long-term highs, which implies that the bullish momentum could be exhausted soon. As of writing, the New Zealand dollar was changing hands in the 0.6830 area, up 0.26% on the day. The daily RSI has reached the 70 handle, suggesting further upside could be limited. Furthermore, the fact that the pair refrains from posting fresh highs after a rally witnessed on Monday, could be a sign of the impending reversal with the subsequent downside correction. If so, the immediate support is expected at 0.68, followed by 0.6770 and 0.6740. On the upside, the bulls need to push the prices above 0.6840 in order to challenge the mentioned peaks last seen in March 2019.
USDCHF retains a bullish bias on Tuesday after a strong rally witnessed yesterday. The pair is deriving support from the 20-DMA, today at 0.91. As long as the dollar stays above this figure, a short-term technical picture remains constructive. On the upside, the prices have been capped by the 100-DMA since late-May, and it looks like the greenback will refrain from challenging this barrier any time soon. The daily RSI shows only a modest bullish bias in the neutral territory, suggesting further upside is limited. In the four-hour timeframes, the pair has regained the 200-SMA in recent trading and could retain the current upside bias if the prices stay above this moving average that arrives at 0.9137.
