A daily close above the 1.1600 level would be neutral for the common currency
The dollar is back on the offensive on Tuesday, climbing higher versus most counterparts despite US 10-year yields look side-lined just below the 1.50% figure. As such, EURUSD is back around the 1.1600 figure after a short-lived jump to the 1.1640 area at the beginning of the week. The daily RSI is pointing lower while holding just around the 30 figure, suggesting the downside potential could be limited for the time being. A daily close above the 1.1600 level would be neutral for the common currency while a break below this immediate support zone could add to a bearish tone in the coming days. Later in the day, the publication of the ISM non-manufacturing, final services PMI and trade balance figures will be in focus. Strong figures could send the greenback higher across the board. In this scenario, EURUSD could threaten the 1.1590-1.1585 region.
The cable has been climbing for the fourth day in a row on Tuesday despite a stronger dollar. The pair peaked at 1.3640 at the beginning of the week and has been refraining from challenging this region since then, suggesting the pound could lack bullish momentum to overcome this intermediate barrier in the short term. On the downside, the nearest support now arrives at 1.3600, followed by the 1.3585 area and 1.3540. On the hourly timeframes, the technical picture looks mixed as the prices have settled above the key moving averages while the RSI looks directionless around the 65 mark. In a wider picture, recovery attempts look shallow following four consecutive weeks of losses, with the pair staying well below the 20-week SMA, today at 1.3830.
Gold prices are back under the selling pressure on Tuesday following three bullish days. Yesterday, the precious metal peaked at $1,1770 to finish just below 1.5-week highs. However, the bullion failed to preserve upside momentum and came off local highs on Tuesday as dollar demand reemerged. The pullback extended through the early European hours and dragged the dollar-denominated commodity to daily lows around $1,1755 in recent trading. If the dollar remains upbeat in the coming days, the XAUUSD pair would come under more severe pressure and could threaten last week’s lows registered just above the $1,720 area. Of note, the prices dipped back below the descending 20-DMA, adding to a more bearish technical picture in the short term. On the upside, a decisive break above the $1,1770 region would pave the way towards the $1,800 psychological figure last seen in mid-September.
USDCHF turned into recovery mode on Tuesday following a three-day losing streak. The pair has settled above the 20-DMA during the European hours following a bounce from the 0.9230 figure. However, the dollar lacks upside momentum to regain the 0.9300 level, facing intermediate resistance in the 0.9270 area. The technical picture looks upbeat at this stage, suggesting the pair could at least preserve a bullish bias on an intraday basis. On the four-hour charts, USDCHF is flirting with a slightly ascending 100-DMA, with some technical signals pointing to limited upside momentum in the immediate term, including the directionless RSI in the neutral territory. Should the buying pressure surrounding the greenback intensify later in the day, the 0.9300 figure will come back into the market focus.