EURUSD managed to reverse losses seen yesterday to climb back to the 1.2170 area earlier in the day
Despite risk aversion across the financial markets, the greenback lacks safe-haven demand on Tuesday. Against this backdrop, EURUSD managed to reverse losses seen yesterday to climb back to the 1.2170 area earlier in the day. However, the pair has trimmed intraday gains since then and was last seen trading just 0.21% higher on the day. The immediate support is now expected at 1.2125, followed by the 1.2100 figure. As long as the common currency remains above this level, downside risks are limited. On the upside, a decisive break above the mentioned intraday highs would pave the way towards the 1.2200 barrier.
The cable rallied fresh late-February highs around 1.4160 at the start of the week before retreating partially. The pair managed to finish above the 1.4100 figure and retains a slight bullish bias on Tuesday. The daily RSI is about to enter the overbought territory, suggesting further gains could be limited in the short term. On the four-hour charts, the prices are stuck in a tight range, struggling to extend recent gains, also pointing to reemerging downside risks in the short term. In a wider picture, however, the pound remains bullish and could see fresh highs down the road as the dollar looks weak these days.
USDJPY continues to oscillate around the 20-DMA, struggling to regain upside momentum since peaking at 109.70 last week. The pair was last seen trading around 108.75 after a bounce from the mentioned moving average earlier in the day. Now, the dollar needs to regain the 109.00 figure in order to shrug off the current bearishness and recoup last week’s losses. Otherwise, local lows in the 108.30 will come back into market focus. On the upside, the immediate hurdle now arrives at 109.00. A decisive break above this level on a daily closing basis would pave the way towards the 109.30 next intermediate resistance. On the hourly charts, USDJPY was rejected by the 20-SMA while the RSI has reversed lower, suggesting the technical picture could deteriorate in the immediate term.
Gold prices have been rising for the fifth consecutive day on Tuesday after climbing to fresh three-month highs at the start of the week. The bullion peaked at $1,845 before settling around $1,839 in recent trading on Tuesday. Despite the persisting bullish bias, further gains could be limited in the short term as the daily RSI is about to enter the overbought territory. Furthermore, the yellow metal could need an extra impetus to challenge the next resistance represented by the 200-DMA that arrives at $1,851. The last time the prices touched this moving average was in the first half of February. On the four-hour charts, the technical picture looks neutral, with prices holding above the ascending 20-SMA.
USDCHF slipped to February 23 lows on Monday before turning flat on the day. Today, the pair is trading marginally higher, still lacking recovery momentum as the dollar is mostly lower despite risk aversion across the financial markets. The prices were last seen around 0.9025, slightly off intraday highs in the 0.9032 area. The greenback now needs to regain the 0.9080 region where the 100- and 200-DMAs converge in order to shrug off the current bearish pressure. In a wider picture, the key barrier is represented by the 20-day simple moving average that arrives at 0.9123 today. In the near term, the pair will likely stay on the defensive despite the daily RSI has reversed north in recent trading.