The key hurdle for euro bulls now arrives at 1.2100, but the pair may lack the upside momentum to challenge this barrier in the near term
EURUSD edged to the 1.2080 area earlier in the day before retreating to the 100-DMA in recent trading. The key hurdle for euro bulls now arrives at 1.2100, but the pair may lack the upside momentum to challenge this barrier in the near term. Of note, as risk sentiment has deteriorated somehow, the safe-haven greenback trims losses during the European hours. On the four-hour charts, the RSI has reversed south in the overbought territory, suggesting the pair could get back below the mentioned moving average by the end of the day. In a wider picture, the upside potential could be capped by the 20-week moving average that arrives just at the mentioned highs.
GBPUSD turned marginally lower on the day following six bullish sessions in a row. The pair peaked at the 1.4000 figure earlier in the day before retreating. Of note, this barrier capped bullish tone one month ago, suggesting the cable could struggle to overcome this resistance once again. In this scenario, immediate support should be expected at 1.3920. On the hourly charts, the cable has dipped below the 20-SMA in recent trading, adding to a more downbeat technical picture in the short term. Now, the pair needs to climb back to the 1.4000 figure in order to regain a bullish tone and extend gains in the coming days.
USDJPY briefly dipped below 108.00 during the Asian session but managed to stage a bounce eventually, entering green territory following six days of losses. The dollar was last seen changing hands at 108.36, up 0.20% on the day. Despite the latest bounce, the overall technical picture remains bearish, especially as the pair stays below the 20-DMA that arrives around 109.50 today. On the downside, the prices need to hold above the 108.00 figure in order to avoid fresh losses. On the four-hour timeframes, the dollar is being capped by the descending 20-SMA while the RSI reversed lower again, suggesting the recovery potential is limited in the immediate term.
The Kiwi rose to 0.7230 for the first time in a month earlier on Tuesday. However, the pair failed to extend the rally and trimmed intraday gains as the dollar staged a local reversal. The pair was last seen clinging to the 0.7200 figure, a break below which would pave the way back to the 100-DMA that arrives at 0.7150. Still, the daily RSI keeps trending slightly higher in the neutral territory, suggesting there is scope for fresh gains in the short term. In the immediate term, the Kiwi needs to hold above 0.7200 on a daily closing basis. On the weekly charts, the pair has settled above the 20-SMA, adding to a broadly upbeat technical picture.
AUDUSD rallied to one-month highs above the 0.7800 figure earlier in the day but failed to preserve gains and retreated during the European hours. The pair was last seen trading in the 0.7770 area, up 0.28%. Despite the correction, the Aussie remains positive and could see more gains in the short term. On the other hand, the RSI is pointing only slightly higher in the neutral territory, suggesting the upside potential is limited at this stage. On the downside, the immediate support arrives around 0.7750, followed by 0.7725, and 0.7700. In a wider picture, the prices are holding marginally above the 20-week SMA. As long as this moving average acts as support, bearish risks are limited.
Leave Your Opinion