The common currency dipped below the 100-DMA that has been acting as resistance since last Friday’s plunge
EURUSD derailed the 20-DMA for the first time in a month on Tuesday, extending losses to the 1.2000 critical mark. During the retreat, the common currency dipped below the 100-DMA that has been acting as resistance since last Friday’s plunge witnessed amid broad-based strength surrounding the greenback. If the 1.2000 level fails to withstand the selling pressure, the 1.1950 region will come back into market focus for the first time since April 19. As long as the euro stays above this support zone, downside risks look limited. On the hourly charts, the RSI has bounced from the oversold territory and was pointing higher, suggesting a bounce could be expected in the immediate term.
The cable fell to the 20-DMA earlier in the day before trimming intraday losses. As such, the pair bounced from the 1.3850 region to settle around 1.3885, struggling to regain the 1.3900 figure that now represents the immediate target for sterling bulls. In a wider picture, the prices continue to derive support from the ascending 100-DMA and will likely hold above this moving average in the medium term. In the immediate term, should GBPUSD stay above the 20-DMA, fresh bullish attempts could bring the pair back above 1.3900 eventually if dollar demand eases. A longer-term upside goal arrives at the 1.4000 figure last seen on April 20.
USDJPY briefly rallied to 109.70 on Monday but failed to preserve gains and corrected lower. Today, the pair resumed the ascent amid the resurgent demand for the greenback. The prices managed to hold above the 109.00 figure and extended intraday gains to the 109.50 area that represents the immediate hurdle on the upside. Also on the positive side, the pair is holding above the 20-DMA, today at 108.77. As long as this moving average acts as a support zone, downside risks look limited. On the short-term timeframes, there are some early signs of waning upside momentum, but the overall technical picture looks fairly upbeat for the time being.
USDCHF bounced from a slightly descending 200-DMA last week and has been trending mostly higher since then. On Tuesday, the pair resumed the ascent to extend gains to nearly one-week highs around 0.9160. Now, the dollar targets the 20-DMA last seen one month ago. If the prices manage to overcome this barrier that arrives at 0.9170, the short-term technical picture would improve substantially. As the daily RSI is pointing north while the pair retains a bullish bias on the daily charts, it looks like USDCHF could extend the ascent to challenge the mentioned moving average. On the four-hour timeframes, however, there are some signs of a fading bullish momentum, suggesting further upside potential is limited.
AUDUSD failed to preserve yesterday’s gains as dollar demand picked up again, sending the pair to the 0.7700 area where the 20- and 100-DMAs converge. If these moving averages give up, the Aussie would see deeper losses in the short term. The daily RSI has reversed south in the neutral territory, suggesting the pair will likely struggle to resume the ascent at this stage. On the four-hour charts, AUDUSD has settled below the key moving averages, adding to a downbeat technical picture. The 0.7700 figure is now in market focus while on the upside, a strong recovery above the 0.7765 region is needed.