The euro may need the additional catalyst to make a decisive break above 1.2309
EURUSD retains a bullish tone, targeting fresh long-term highs above the 1.2300 handle that represents the immediate resistance on Tuesday. The pair was twice rejected from the 1.2309 figure, which implies that the common currency may need the additional catalyst to make a decisive break above this level. Another rejection from this barrier could trigger a bearish correction in the days to come. In this scenario, the prices could initially retreat to 1.2225, followed by the 1.2200 figure and the ascending 20-DMA, today at 1.2190. As long as EURUSD stays above this moving average, upside risks persist. If the prices manage to turn 1.2300 into support, the 1.2400 barrier will come into market focus.
GBPUSD registered fresh May 2018 highs around 1.3700 on Monday and saw a local downside correction from tops. However, the cable derived support from the 1.3540 area and bounced on Tuesday, trading just below the 1.3600 figure during the European hours. Despite the pound lacks the upside momentum to challenge this immediate barrier, the overall technical picture remains constructive. On the positive side, the pair continues to derive support from the ascending 20-DMA, today at 1.3463, while the daily RSI remains in the neutral territory, suggesting there is further room to the upside.
USDJPY dipped to fresh march lows around 102.70 on Monday but managed to erase intraday gains eventually. Today, the pair is back under the selling pressure, having settled below the 103.00 figure that represents the immediate resistance now. The longer the prices stay below this level, the higher the downside risks are getting. If the dollar slips below the mentioned lows, the next bearish target should be expected at 102.00. On the upside, a recovery above 103.00 would pave the way toward 103.30, followed by the descending 20-DMA, today at 103.60. On the four-hour charts, the upside potential in the pair has been capped by the descending 20-SMA since December 29, adding to the downbeat short-term technical picture.
Gold prices have been rising for the fifth day in a row on Tuesday, nearing the $1,950 resistance for the first time in nearly two months. The precious metal is now back above the key moving averages, pointing to the improving technical picture. On the other hand, the daily RSI has now climbed to the 70 handle and is about to enter the overbought territory, suggesting a downside correction could take place soon. If rejected from the $1,950 area, the bullion would encounter the immediate support at $1,945. In a wider picture, the 20-DMA (today at $1,874) represents a significant support zone. On the upside, a decisive break above the mentioned barrier would pave the way toward $1,965.
The Aussie resumed the ascent after a short-lived pullback seen yesterday. A double top at 0.7740 was created as a result, suggesting the pair could need an extra impetus to challenge this area where April-2018 highs lie. On Tuesday, the Australian dollar is clinging to the 0.7700 handle, refraining from challenging the mentioned peaks despite the greenback remains under pressure across the board. On the four-hour charts, the prices have recovered above the ascending 20-SMA in recent trading, suggesting AUDUSD could eventually turn the 0.7700 level into support. On the other hand, as the RSI is getting flat on the short-term timeframes, the rally could slow in the near term.
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