Downside risks surrounding the euro persist as long as the prices remain below the 1.2000 figure last seen nearly three weeks ago
EURUSD
EURUSD slipped back below the 1.1900 figure following failed attempts to challenge the 1.1950 intermediate resistance. The pair was last seen trading around 1.1890, down 0.31% on the day. The common currency is now stuck between the 20- and 200-DMAs that represent the key resistance and support areas, respectively. For now, the pair will likely stay within this range, with downside risks persisting as long as the prices remaining below the 1.2000 figure last seen nearly three weeks ago. On the hourly charts, EURUSD has broken below the key moving averages, adding to the downbeat short-term technical picture.
GBPUSD
Following marginal gains on Monday, GBPUSD resumed its retreat from the 20-DMA today. The cable dipped to a February 9 low of 1.3767, struggling to stay afloat amid broad-based dollar strength due to the bearish risk sentiment seen in the global financial markets on Tuesday. If the downside pressure intensifies any time soon, the pair would target the 1.3675 support area, followed by the ascending 100-DMA that arrives just below the 1.3600 handle. On the upside, the mentioned 20-daily moving average (today at 1.3920) represents the key target for bulls. On the short-term charts, the prices are flirting with oversold levels, suggesting a short-lived bounce could be expected.
USDJPY
USDJPY erased yesterday’s losses despite the resurgent dollar demand nearly across the board. The pair faced resistance just below the 109.00 figure, to retreat to March 12 lows around 108.50. If this intermediate support gives up, the ascending 20-DMA around 108.00 will come into the market focus for the first time in a month. However, this moving average could trigger a bounce with the subsequent recovery as the dollar remains attractive for buyers in general. In the longer term, recent highs above the 109.00 figure continue to attract traders’ attention. On the negative side, the greenback has settled below the descending 20-SMA on the four-hour timeframes.
EURJPY
The cross is back under pressure following a short-lived rally seen on Monday. As a result, the pair dipped below the 20-DMA (today at 129.40), to extend the decline towards the 129.00 figure. As long as the common currency stays above 128.90, downside risks are limited despite the current selling pressure. On the upside, the immediate resistance now arrives at the mentioned moving average, followed by 129.70, and the 130.00 psychological figure. On the short-term charts, the RSI is entering the oversold territory, suggesting the retreat could slow down in the immediate term. Otherwise, EURJPY would easily break below 129.00.
USDCAD
USDCAD resumed the ascent on Tuesday after some hesitation at the start of the week. The pair regained both the 1.2550 intermediate resistance and the 20-DMA that arrived at 1.2570 today. Now, the dollar needs to overcome the 1.2580 region in order to target 1.2600. In the immediate term, the prices could struggle around the mentioned moving average before deciding on the further direction. A daily close above this SMA would be a confirmation of the latest breakout. Otherwise, a retreat towards the 1.2520 bearish target could be expected. At this stage, the path of least resistance appears to the upside. On the four-hour charts, the dollar has eroded the 100-SMA, adding to the upbeat short-term technical picture.
