The USD index has settled at two-day highs around 92.80, extending further the bounce of recent lows in the 92.50 area
The USD index has settled at two-day highs around 92.80 on Tuesday, extending further the bounce of recent lows in the 92.50 area. The euro failed to overcome the 1.1800 resistance during the rally witnessed on Friday and has been under some selling pressure since then. This immediate barrier is strengthened by the 20-DMA at this stage, suggesting the common currency could need an extra catalyst to make a decisive breakout in the near term. Earlier in the day, EURUSD dipped to the 1.1760 area before bouncing marginally. If this support withstands the pressure, the pair would regain the 1.1780 region, followed by the mentioned moving average that arrives at 1.1800. On the downside, the common currency may get back under the 1.1750 region, with the initial target arriving at 1.1730, followed by the 1.1700 key support.
The cable came under more severe selling pressure today to get back below the 1.3800 figure during the European hours. The pair extended losses to the 1.3785 area in recent trading and was last seen flirting with a slightly ascending 200-DMA. A break below this moving average which arrives at the mentioned intraday lows would pave the way towards 1.3745, followed by the 1.3700 figure last seen nearly one month ago. On the upside, the immediate resistance now arrives at 1.3825, followed by the 1.3845 region where the 20-DMA lies. On the four-hour timeframes, the technical picture looks bearish, with the RSI is pointing lower but is yet to enter the oversold territory.
USDJPY bounced slightly from a two-week low of 109.11 to turn marginally positive on Tuesday following four days of losses. During the recent sell-off, the pair got back under the key moving averages but managed to derive support from the 109.00 region that could trigger a more pronounced bounce should the greenback preserve bullish bias in the short term. Otherwise, the mentioned support would give up to open the way towards the 108.70 important zone. On the hourly charts, the near-term technical picture looks neutral, with the pair flirting with the 20-SMA while the RSI is directionless around 45. Earlier in the day, the prices climbed to the 109.40 area before retreating marginally, suggesting the dollar lacks recovery momentum at this stage.
USDCHF has been losing ground for the third day in a row on Tuesday, albeit the downside momentum has slowed somehow in recent trading. The pair registered 1.5-week lows around the 0.9100 figure before bouncing marginally during the European hours. Now, the dollar needs to hold above this support zone in order to avoid deeper losses in the coming days. On the other hand, recovery attempts will likely be capped by the 20- and 100-DMAs in the near term, with the key immediate upside barrier is represented by the 109.35 region. On a wider picture, USDCHF needs to regain the 0.9200 figure in order to regain a more convincing upside momentum.
USDCAD extended yesterday’s gains on Tuesday as the safe-haven dollar demand picked up this week. The pair advanced to nearly four-week highs around 1.2630 but is yet to confirm a break above the 1.2600 barrier on a daily closing basis. During the ascent, the dollar exceeded the 20- and 200-DMAs, adding to a more upbeat technical picture. The daily RSI is pointing north in the neutral territory, suggesting there is room for further gains in the near term. On the downside, the 1.2600 level now represents the immediate support, followed by the 1.2560 area where the 200-DMA arrives. On the four-hour charts, there are some signs of waning upside momentum, with the RSI is getting flat in the overbought territory, which implies that further gains could be limited in the immediate term.