AUDUSD dipped to one-week lows in the 0.7670 area before recovering to the 0.7700 figure
EURUSD struggles for direction on Tuesday following a rejection from the 20-DMA that continues to represent the key hurdle for bulls in the short term. The pair dipped to 1.2107 earlier in the day but managed to bounce in recent trading. Still, the common currency doesn’t dare to reenter positive territory, having settled in a tight range even as the greenback pared earlier gains as risk sentiment has improved somewhat in Europe. As such, the euro climbed to the 1.2130 area while the intraday highs were registered at 1.2145 earlier in the day. On the four-hour charts, the pair is now below the 20-DMA, suggesting the downside pressure could persist in the short term.
GBPUSD is nearly unchanged on Tuesday following a recovery from an earlier dip to the 1.3610 area. As of writing, the pair was changing hands around 1.3670, slightly off intraday highs. Despite the cable managed to erase earlier losses, it looks vulnerable as market sentiment remains unstable at this stage. On the four-hour timeframes, the pound is stuck between the 100- and 20-DMAs while the RSI looks directionless in the neutral territory, suggesting the prices could spend some time in consolidation before deciding on a further direction. In a wider picture, however, GBPUSD continues to stay elevated while clinging to long-term highs registered last week in the 1.3750 region.
USDJPY managed to hold above the 20-DMA and turned marginally positive on the day. The pair once again derives support from the 103.65 area and bounced. Still, the upside potential looks limited at this stage, with the 104.00 handle continuing to act as the key immediate resistance. As long as the greenback is below this level, bearish risks continue to persist while a break below the mentioned moving average (today at 103.58) would pave the way to the 103.30 support zone, followed by the 103.00 figure. On the upside, a decisive break above the 103.80 intermediate resistance is necessary for a more sustainable recovery.
USDCHF has been rising for the third day in a row on Tuesday, having regained the 20-DMA in recent trading. As such, the pair has settled around 0.8880 after a rejection from intraday highs just below the 0.8900 figure. The daily RSI is pointing north in the neutral territory, suggesting further gains could lie ahead in the short term. On the downside, the immediate support is now expected at 0.8855 where the mentioned 20-DMA arrives. As long as the pair stays above this level, downside risks look limited. On the hourly charts, however, the pair is flirting with the 200-SMA, a break below which would pave the way to the mentioned support.
The Aussie keeps losing upside momentum gradually since last week’s rejection from local highs around 0.7780. Today, the pair dipped below the 20-DMA that is now turning into resistance for the first time since early-November, suggesting the technical picture could deteriorate further if the prices fail to stage a bounce in the short term. Earlier in the day, the pair dipped to one-week lows in the 0.7670 area before recovering to the 0.7700 figure that remains on market focus in the immediate term, as a daily close below this level would be a confirmation of another breakdown.