The euro has climbed above the 1.2100 handle but is yet to confirm the latest breakout on a daily closing
EURUSD has exceeded the 20-DMA for the first time in a month as the dollar keeps losing ground against its counterparts on Tuesday, extending the dip since last Friday. The pair climbed above the 1.2100 handle but is yet to confirm the latest breakout on a daily closing basis as risk sentiment has been deteriorating during the European hours. As a result, the daily RSI has reversed north while staying in the neutral territory, suggesting the recovery could continue in the short term. on the four-hour timeframes, the common currency is now above the 100-SMA, adding to a more upbeat short-term technical picture.
GBPUSD rallied to fresh April-2018 highs around 1.3790 today amid broad-based dollar weakness. the pair managed to bounce from the 20-DMA late last week and has accelerated the ascent since then, remaining bullish for the time being. It looks like the cable is ready to challenge the 1.3800 figure and register fresh long-term tops in the coming days. In case of a downside correction, the pound will first target the 1.3730 area, followed by the 1.3700 figure and the mentioned 20-DMA that arrives at 1.3680 today. The RSI both in the near-term and the daily charts hasn’t reached overbought conditions just yet, suggesting the prices could gain further in the short term.
USDJPY failed to confirm a break above the 100-DMA late last week and has reversed lower. On Tuesday, the pair has accelerated the retreat from four-month highs after a break below the 105.00 figure that has now turned into the key resistance. The dollar was last seen trading around 104.60, not far from late-January lows set earlier in the day. It looks like the pair could extend the downside correction further while targeting the 104.40 zone where the 100-DMA, followed by the 200-DMA lies. if these moving averages withstand the pressure, a bounce could be expected.
The Kiwi surged to one-month highs around 0.7250 in recent trading. The short-term technical picture has improved further after a recovery above the 20-DMA, today at 0.7180. If the mentioned tops give up any time soon, the prices could target the 0.7300 handle for the first time since January 7th. However, the New Zealand dollar could lack the upside momentum to extend the current rally that may lose steam in the short term. Furthermore, the bullish bias in the near-term charts has been waning already, suggesting NZDUSD could get back below the 0.7200 handle by the end of the day, with the mentioned 20-DMA remaining in market focus for now.
USDCAD has been trending lower for the third session in a row on Tuesday. Early in Asia, the pair dipped below the 20-DMA that has turned into resistance for the first time in three weeks. As a result, the daily RSI has turned even lower but still stays in the neutral territory, suggesting there is room for further downside in the short term. As of writing, the pair was changing hands around two-week lows in the 1.2715 area. If the selling pressure intensifies any time soon, the prices could slip below the 1.2700 figure and thus retarget the 1.2680 area. On the hourly charts, USDCAD has settled below the 20-SMA while the RSI is about to enter the oversold territory.
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