Now, as the common currency has settled above the 1.2200 figure, the euro bulls may target the 1.2300 next hurdle
EURUSD surged to fresh January highs in the 1.2260 area before paring gains slightly. The pair was last seen clinging to the upper end of the intraday range, however, as the dollar remains depressed across the board. Now, as the common currency has settled above the 1.2200 figure, the euro bulls may target the 1.2300 next hurdle if upbeat risk sentiment persists in the short term. On the downside, the immediate support now arrives at 1.2210, followed by the 1.2170-1.2160 area. If the pair corrects below this region, the ascending 20-DMA (today at 1.2130) will come back into market focus for the first time since mid-May. In the longer term, the outlook for the European currency remains bullish.
GBPUSD turned marginally positive on Tuesday but still lacks momentum to challenge three-month highs seen late-last week at 1.4233. The pair now struggles to regain the 1.4200 figure despite dollar weakness, suggesting the cable could see a local downside correction in the short term before another rally towards fresh tops takes place. On the hourly timeframes, there are some bearish signs including a downside reversal in the RSI. Also, the pound has dipped under the 20-hour simple moving average in recent trading, which implies that the pair could stay below the 1.4200 handle for the time being. However, the pair remains bullish on the weekly charts.
USDJPY bounced from nearly two-week lows around 108.55 earlier in the day. As a result, the pair erased yesterday’s losses to turn positive on the day. However, the greenback still lacks momentum to overcome the 109.00 figure that represents the immediate target for USD bulls. Furthermore, the 20-DMA lies around this level, suggesting the pair could need an extra catalyst to overcome this resistance, especially as the dollar remains on the defensive nearly across the board. On the four-hour charts, the prices were last seen flirting with the key moving averages while the RSI was pointing north, pointing to a mixed technical picture in the immediate term.
USDCAD keeps clinging to the lower end of the trading range, threatening fresh six-year lows seen just above the 1.2000 figure last week. The fact that the pair struggles to stage a recovery despite the oversold conditions suggests the dollar could stay on the defensive in the short term at least. USDCAD was last seen changing hands around 1.2040, unchanged on the intraday charts. The prices need to overcome the 1.2100 handle in order to partially shrug off the selling pressure and retarget the descending 20-DMA that arrives in the 1.2155 today. On the weekly timeframes, the technical picture remains clearly bearish.
The cross climbed to February 2018 highs around 133.50 on Tuesday as the common currency derives support from a better risk sentiment that pushed the safe-haven yen lower. The pair retains a bullish tone during the European hours while the RSI has entered the overbought territory, suggesting further gains could be limited in the short term. However, the overall upbeat tone will likely stay intact as the prices are still steady above the ascending 20-DMA, today at 132.20. On the four-hour charts, the technical picture looks positive, with the RSI pointing north in the neutral territory while the prices have climbed back above the 20-SMA during the European hours.