The common currency could struggle to regain the 1.2100 figure in the short term, but downside risks look limited as well
EURUSD slipped to the 100-DMA around 1.2050 earlier in the day before bouncing slightly. The euro remains under some selling pressure during the European hours following yesterday’s rejection from two-month peaks beyond 1.2100. The pair was last seen changing hands around 1.2075, down less than 0.1% on the day. The common currency could struggle to regain the 1.2100 figure in the short term, but downside risks look limited as well. On the four-hour charts, the pair bounced from the 20-SMA to trim losses, suggesting the immediate technical picture looks rather neutral than bearish. On the downside, the mentioned moving average represents the key immediate support.
The cable has been rising for the third consecutive day on Tuesday despite the dollar turned positive amid worsening risk sentiment in the global financial markets. The pair managed to hold above the 20-DMA last week and was last seen flirting with the 1.3900 figure during the European hours. Now, the immediate resistance is represented by the 1.3930 region, followed by the 1.3950 zone and the 1.4000 key hurdle that triggered a pullback last week. As the pound refrains from challenging the nearest barrier, it looks like the prices could stay within the current trading range before deciding on a clearer direction. As long as GBPUSD remains above the mentioned 20-DMA (today at 1.3830), downside risks look limited.
USDJPY edges modestly higher on Tuesday while facing local resistance around 108.40. The pair extends the recovery from last week’s lows seen in the 107.50 area but still looks upside momentum to stage a more sustained bounce towards the 109.00 figure where the descending 20-DMA lies. However, as the daily RSI is pointing north in the neutral territory, the greenback could at least retain a bullish bias in the short term. On the downside, the immediate support is now represented by the 108.00 level. A daily close above this figure would be a confirmation of the latest modest breakout while below 107.75, bearish pressure could reemerge and intensify eventually.
The Kiwi rose to mid-March highs around 0.7240 on Monday before losing upside momentum to settle in negative territory today. Earlier in the day, the pair derived support from the 0.7200 figure to bounce to 0.7225 in recent trading. However, the New Zealand dollar now needs to regain the 0.7235 region in order to turn positive on the day. At the same time, as long as the prices stay above 0.7200, downside risks look limited. On the four-hour charts, the prices are barely holding above the 20-SMA, a break below which would somehow add to the local selling pressure.
USDCAD plunged to mid-March lows below 1.2400 on Monday, struggling to regain this figure today despite the dollar turned positive across the board. The pair faced resistance around 1.2420 earlier in the day but failed to extend the recovery as the greenback still lacks upside momentum to stage a more robust ascent. In the short term, USDCAD will likely stay on the defensive, with risks of returning below 1.2400 persisting. On the hourly charts, the prices were last seen flirting with the 20-DMA while the RSI was pointing south, suggesting the upside potential is limited at this stage.