The euro turned positive following three bearish sessions in a row
Dollar demand has eased following yesterday’s rally to fresh four-month highs. The USD index struggles for direction above the 93.00 figure during the European hours after hitting fresh tops near 93.50 at the beginning of the week. EURUSD derived support from the 1.1700 figure yesterday to trim intraday losses eventually. On Tuesday, the pair turned positive following three bearish sessions in a row. Still, the euro stays below the 1.1750 intermediate resistance as the greenback refrains from a deeper downside correction for the time being. On the four-hour charts, EURUSD is approaching the 20-SMA. However, the RSI looks directionless, lacking upside momentum, which implies that the bullish potential would stay limited in the near term.
The cable bounced higher on Tuesday following three days of losses. The pair slipped to nearly one-month lows around 1.3640 at the beginning of the week amid a widespread rally in the greenback. Today, the pound bounced to the 1.3690 area, still struggling to regain the 1.3700 figure which represents the immediate upside barrier at this stage. A decisive recovery above this level would pave the way towards the 1.3725 area, followed by the 20-DMA, today at 1.3780. The technical picture has improved somehow on shorter-term timeframes, but the directionless RSI suggests the cable will likely lack recovery momentum to make a decisive break above 1.3700 in the near term, with bearish risks persisting as long as the prices stay below the mentioned simple moving average.
Gold prices have been retaining a modest bullish bias for the third session in a row. However, the precious metal lacks upside impetus to stage a more robust and sustained recovery following a sell-off witnessed last week. The bullion has been struggling to overcome the $1,767 area since last Friday, refraining from a break above the $1,800 figure despite dollar demand has eased on Tuesday. It looks like the yellow metal could struggle for direction below the $1,780 area in the near term. Should the dollar resume the ascent anytime soon, the XAUUSD pair may threaten the $1,740 region that capped losses yesterday. On the upside, gold prices need to regain the $1,780 zone in order to challenge the 20-DMA, followed by the $1,800 key figure. In a wider picture, gold needs to stay above a slightly ascending 100-week SMA (today at $1,755) in order to avoid fresh losses following two bearish weeks.
USDCHF briefly jumped to April highs in the 0.9330 area on Monday but failed to preserve gains and retreated to 0.9275 at the close of trade. Today, the dollar extended losses to 0.9245 and could threaten the 0.9200 figure if the pressure persists in the near term. The prices are reversing strong gains seen last week, with the bearish bias in the daily RSI suggesting the pair could stay on the defensive ahead of the Federal Reserve meeting that concludes on Wednesday. In the immediate term, USDCHF needs to regain the 0.9300 figure in order to avoid deeper losses. However, it looks like bearish risks will continue to persist for the time being. On the hourly charts, the RSI has entered the oversold territory in recent trading while continuing to point south, adding to a downbeat technical picture.