It looks like the euro will get back under the 1.1800 figure in the near term
The dollar turned marginally lower versus major counterparts ahead of key US inflation data. Expectations are for CPI to rise 0.4% in August, down from 0.5% in July. The USD index dropped to 2-day lows in the 92.50 region following yesterday’s unsuccessful attempt to retake the 93.00 barrier. Against this backdrop, EURUSD climbed to the 1.1830 area earlier in the day before retreating in recent trading. It looks like the pair will get back under the 1.1800 figure in the near term. In this scenario, the common currency would derail the ascending 20-DMA which arrives at 1.1793. Then, the market focus will shift towards yesterday’s lows around 1.1770. If this zone fails to withstand the selling pressure, the technical outlook would deteriorate further.
The cable derived support from the 1.3800 area at the beginning of the week to finish unchanged on Monday. Today, the pair regained upside momentum despite a steady dollar. The prices climbed to the 1.3880 area before retreating marginally in recent trading. Now, the pound needs to gold above the 1.3850 area in order to preserve gains beyond the 200-DMA, today at 1.3825. On the upside, a decisive break above the mentioned local highs would pave the way towards the 1.3900 figure last seen in early-August. On the positive side, the daily RSI continues to point higher in the neutral territory while the pair derives support from the mentioned 200-DMA.
USDJPY has been rising for the third day in a row on Tuesday. Earlier in the day, the pair bounced from the 20-DMA to get back above the 110.00 figure. However, the dollar is yet to confirm a break above this level on a daily closing basis. Otherwise, a downside correction could be expected in the short term. On the hourly timeframes, USDJPY has settled above the key moving averages while the RSI is pointing north in the neutral territory., suggesting the dollar would at least stay afloat in the immediate term. On the downside, the 20-DMA (today at 109.90) represents the immediate support, followed by the 109.80 area where the 100-DMA arrives.
Gold prices have been treading water below the 20-DMA for the fifth session in a row on Tuesday. The precious metal failed to challenge the $1,800 psychological level at the beginning of the week to turn negative on Tuesday. The XAUUSD pair retreated to the $1,1785 area and was last seen clinging to the lower end of the intraday range. If this intermediate support gives up anytime soon, the $1,780 region will come back into the market focus. On the negative side, the bullion has settled below the key moving averages, lacking upside momentum to overcome the $1,800 figure. On the four-hour charts, the near-term technical outlook looks downbeat as well.
The Aussie is back under pressure on Tuesday following a short-lived recovery seen at the beginning of the week. The pair failed to overcome the 0.7375 intermediate resistance which capped bullish impetus on the way towards 0.7400. Today, the prices dipped to 0.7330 for the first time since early-September. If the downside pressure persists in the short term, the AUDUSD pair could challenge the 20-DMA, today at 0.7310, followed by the 0.7300 psychological figure. On the four-hour timeframes, the technical picture keeps deteriorating, with the Australian dollar flirting with the 100- and 200-SMAs as of writing. The RSI is pointing south but is yet to enter the oversold territory. In a wider picture, the pair keeps retreating towards the 200-week SMA.