The euro lacks the recovery momentum following three days of solid losses
EURUSD climbed to intraday highs around 1.2180 earlier in the day before retreating to nearly-unchanged levels. The pair lacks the recovery momentum following three days of solid losses as the greenback holds relatively steady. The daily RSI turned flat in the neutral territory, suggesting the common currency will likely struggle to see a more robust rebound in the short term, with downside risks persisting as long as the pair stays below the 20-DMA, today at 1.2220. In a wider picture, however, the pair stays within a strong bullish trend that remains intact as long as the prices remain above the 100-DMA that arrives marginally above the 1.1900 handles.
GBPUSD regained the 20-DMA on Tuesday amid a recovery from two-week lows registered in the 1.3450 area at the start of the week. The pair was last seen flirting with the 1.3600 handle, a decisive break above which is essential for a more pronounced bounce from the mentioned local lows. In the four-hour timeframes, the cable derives support from the 200-SMA and reclaimed both the 20- and 100-SMAs as support levels as well, suggesting the short-term technical picture could improve further if the current upside momentum is sustained. In the immediate term, the pound needs to hold above 1.3570 so that to overcome the 1.3600 barrier afterward.
USDJPY bounced from long-term lows last week, having extended the recovery to one-month highs around 104.40 on Monday. However, the pair failed to continue the rally that has stalled today. Still, the dollar is holding above the 104.00 figure, suggesting the downside pressure is limited at this stage while the bullish potential persists. A daily close above this level would be dollar-positive in the short term. On the hourly charts, the pair needs to confirm a recovery above the 20-SMA while the RSI is pointing slightly upwards, which implies that the prices will likely stay afloat in the immediate term.
Gold prices bounced marginally on Tuesday following a four-day slump from two-month highs registered around $1,960 last week. the precious metal opened with a bullish gap, having regained the 200-DMA that represents the immediate support now. As of writing, the metal was changing hands around $1,860, slightly off intraday highs registered at $1,863 earlier in the day. The bullion now needs to reclaim the 20- and 100-DMAs as support levels in order to regain upside ground and climb back above the $1,900 critical level. On the downside, the immediate support arrives at $1,838 where the mentioned 200-DMA lies. in a wider picture, the precious metal needs to hold above the $1,800 handle so that to avoid a deeper sell-off in the days to come.
The Aussie bounced from one-week lows registered on Monday amid a broad-based dollar rally. During a three-day losing streak, the pair managed to hold above the ascending 20-DMA and staged a local reversal as a result. In recent trading, the prices have regained the 0.7700 handle, having climbed to the 0.7740 area that represents the immediate resistance now. On the four-hour charts, AUDUSD was flirting with the 20-SMA at the time of writing, struggling to extend the recovery despite a weaker dollar. Meanwhile, the RSI in the same timeframes looks directionless in the neutral territory, suggesting the pair’s recovery potential will likely be limited in the short term.