The Aussie came under the selling pressure at the beginning of the week, extending losses on Tuesday
The dollar holds steady today, retaining a modest bullish bias as risk sentiment looks mixed, with the euro being capped by the 1.1885 area, trading marginally lower on the day. The EURUSD pair is holding above the 1.1860 area, being stuck within a tight trading range amid low trading volumes. On the downside, if the 1.1855 region gives up in the short term, the 1.1830 area will come back into market focus, followed by the 1.1800 figure and a slightly ascending 20-DMA, today at 1.1778. As long as the pair stays below the 1.1900 handle, downside risks continue to persist in the short term. On the four-hour charts, the technical picture has deteriorated somehow in recent trading as the euro dipped below the 20-SMA while the RSI has reversed south in the neutral territory, suggesting the pair would struggle to regain bullish impetus in the immediate term.
The cable peaked at 1.3890 on Friday before turning negative at the beginning of the week. The pair stays under pressure on Tuesday, extending losses to 1.3796 amid a widespread recovery in dollar demand. The fact that the pound has derailed the 1.3800 figure suggests further losses could be ahead in the short term. In the process, GBPUSD has also dipped below the 200-DMA, today at 1.3814. Now, the pair could retarget the 20-DMA which arrives around 1.3770. If this moving average gives up on a daily closing basis, the cable would see deeper losses in the coming days. On the upside, a recovery above 1.3800 would pave the way towards the 1.3860 region, followed by the 100-DMA (today at 1.3916) seen one month ago.
USDJPY bounced from the 100-DMA on Monday to erase most of Friday’s losses. The pair advanced to the 110.00 handle today, extending the rebound. However, it looks like the greenback would lack upside momentum to make a decisive break above this barrier which caps the way towards last week’s highs around 110.40. On the downside, the pair needs to hold above the 20-DMA (today at 109.83) in order to stay afloat and challenge the mentioned psychological level eventually. On the four-hour timeframes, the technical picture looks bullish as the RSI is pointing north while the prices have settled above the key moving averages, suggesting USDJPY would at least preserve intraday gains at this stage.
The Kiwi extended the rally to the 0.7170 area on Friday before reversing at the start of a new trading week. As a result, the pair extended losses to the 0.7110 region where the 200-DMA lies. If this moving average gives up anytime soon, the 100-DMA at 0.7080 will come back into market focus. The daily RSI is pointing south in the neutral territory, suggesting there is room for further losses in the near term. In a wider picture, the bullish trend remains intact as long as NZDUSD stays above the 0.7000 psychological level. On the hourly timeframes, the technical picture looks neutral, with the pair holding barely above the ascending 100-SMA.
The Aussie came under the selling pressure at the beginning of the week, extending losses on Tuesday. The pair slipped to 0.7393 during the European hours and was last seen clinging to the lower end of the intraday range, staying on the defensive. Earlier in the day, the prices peaked at 0.7468 but failed to preserve mild gains and turned negative eventually. On the hourly charts, the RSI has already entered the oversold territory but continues to point south, which implies that the pair could stay under pressure in the immediate term despite the oversold conditions. In this scenario, the prices may challenge the 0.7355 area, followed by the 20-DMA, today at 0.7305. Should AUDUSD manage to recover above the 0.7400 figure anytime soon, the prices could retarget the 0.7425 area first.