The common currency could threaten the 1.1700 figure if the greenback rallies in the coming days
The dollar reversed Monday’s losses to turn positive versus most counterparts today. Following the rejection from monthly tops near 93.20 recorded last week, the USD index advanced to the 92.70 region. Against this backdrop, EURUSD failed to cling to the 1.1800 figure as the dollar shrugged off yesterday’s weakness to proceed to recovery. Now, the pair struggles around 1.1785 and could threaten last week’s lows around 1.1750 if the selling pressure intensifies. In the context of the upcoming Fed’s meeting, the path of least resistance for the common currency remains to the downside. Furthermore, the pair could threaten the 1.1700 figure if the greenback rallies in the coming days.
The cable failed to break above this week’s highs around 1.3830 to turn slightly bearish on Tuesday. The pair was last seen flirting with the 20-DMA, a break below which could trigger a correction under the 1.3850 area in the short term. As the daily RSI is pointing just slightly higher in the neutral territory, it looks like downside risks are limited for the time being. On the four-hour timeframes, the pair is stuck between the key moving averages which could cap further losses in the immediate term. In this scenario, a modest upside bounce could be expected. On the weekly charts, the technical picture remains neutral, with the pair has been staying below the 20-week SMA for over a month already.
USDJPY peaked at 110.60 on Monday to turn negative as a result of rejection from local highs. Today, the dollar extended losses to the 110.00 area that capped the downside pressure and triggered a mild bounce. The pair trimmed intraday losses but stayed on the defensive during the European hours, suggesting the prices could struggle in the short term, especially as the pair is now back under the 20-DMA, today at 110.35. On the four-hour charts, USDJPY has settled below the key moving averages while the RSI is pointing slightly higher, suggesting the near-term technical picture is neutral. The greenback needs to get back above the mentioned moving average in order to regain upside momentum.
Gold prices have been under pressure for the third consecutive session on Tuesday, albeit the bullion suffers only marginal losses, oscillating around the 100-DMA. Earlier in the day, the precious metal failed to break above the $1,800 figure once again, suggesting the bullion lacks the impetus to regain ground as the dollar remains on the offensive. A decisive break above the 20-DMA that arrives just above $1,800 would pave the way towards the $1,813 intermediate resistance that stands on the way to a slightly descending 200-DMA, today at $1,822. On the downside, immediate support should be expected at $1,790, followed by the $1,775 zone.
AUDUSD erased yesterday’s mild gains to settled around 0.7360 in recent trading. The pair once again failed to regain the 0.7400 barrier that has been acting as resistance since last week. Now, the Aussie needs to hold above the 0.7330 area in order to avoid deeper losses in the short term. However, as the greenback remains resilient, the path of least resistance remains to the downside for the time being. On the four-hour charts, the Australian dollar dipped below the 20-SMA while the RSI is pointing slightly higher, suggesting the immediate technical outlook is neutral. In a wider picture, downside risks persist as long as the prices stay below the 20-week SMA, today at 0.7625.