The greenback derives support from the resurgent rise in Treasury yields
EURUSD dipped to fresh November lows around 1.1730 before bouncing. However, the euro failed to catch a bid as the prices were rejected from the 1.1750 area. Now, the pair is threatening the 1.1700 figure, a break below which would mark a new stage in the short-term bearish trend. On the four-hour charts, EURUSD has been capped by the descending 20-SMA for a week already, adding to the downbeat technical picture surrounding the common currency. Furthermore, the daily RSI hasn’t entered the oversold conditions just yet, which implies that the downside pressure could persist in the short term at least. On the upside, the 1750 area represents the immediate upside target for the pair.
GBPUSD failed to challenge the 1.3850 intermediate resistance on Monday and has been correcting lower since then. Despite its relative resilience, the cable struggles to get back above the 20-DMA as the greenback derives support from the resurgent rise in Treasury yields. Today, the pair derives support from the 1.3740 region that represents a barrier on the way towards the 1.3700 figure. On the upside, the key immediate target comes at 1.3855 where the mentioned moving average arrives today. As the daily RSI remains directionless in the neutral territory, it looks like the pair could settle around the current levels in the immediate term before deciding on the further direction.
USDJPY has been rallying for the fifth day in a row on Tuesday despite the overbought conditions both on the shorter-term and daily charts. The dollar exceeded the 110.00 barrier, to surge to the 110.30 area for the first time since March 2020. Even as the daily RSI is now well above the 70 figure, the technical outlook for the pair remains upbeat, with the prices staying firmly above the ascending 20-DMA since late-January. If the rally continues in the near term, the next bullish target should be expected at 110.80. However, USDJPY is yet to confirm the latest breakout on a daily closing basis. The pair needs to finish above the 110.00 figure in order to retain a strong bullish tone.
XAUUSD failed to hold above the 20-DMA and dipped below the $1,700 handle as a result. The yellow metal extended losses to three-week lows around $1,694 so far but could see lower levels in the short term. Adding to the negative technical outlook, the daily RSI has reversed south following neutral trading. If the mentioned lows fail to withstand the pressure, the $1,675 area will come back into market focus for the first time since March 9. On the hourly timeframes, the technical picture continues to worsen, with the bullion trading well below the descending 20-SMA, suggesting the path of least resistance remains to the downside.
USDCHF rallied to fresh 2020 highs around 0.9425 on Tuesday, resuming the ascent following two sessions of flat trading. As the pair is now above the 0.9400 handle, the market focus shifts to the 0.9450 region that represents the next target for dollar bulls. The daily RSI is nearing the 70 figure but is yet to enter the overbought territory, suggesting there is still room for further upside in the short term. in case of a downside correction, the immediate support is expected in the 0.9400 mentioned zone. In a wider picture, the technical outlook looks upbeat as well, with the prices getting closer to the 100-week SMA that arrives marginally above the 0.9500 figure.