The euro will likely lack the bullish impetus to overcome the 1.1670 intermediate barrier on the way towards the 1.1700 figure in the short term
Changes are relatively light across the currency market on Tuesday. Still, the dollar index is rebounding from a one-month low. EURUSD is flirting with the 20-DMA, trying to regain the 1.1600 figure after a plunge seen yesterday. The fact that the common currency managed to hold above the mentioned moving average (today at 1.1595) suggests that the downside potential could be limited at this stage. However, the euro will likely lack the bullish impetus to overcome the 1.1670 intermediate barrier on the way towards the 1.1700 figure in the short term. On the four-hour charts, the pair is buoyed by the 100-SMA while the 20-SMA keeps capping on the upside. Later in the day, US new home sales and CB consumer confidence numbers could affect short-term dynamics in USD pairs. Also, traders are gradually preparing for the upcoming Federal Reserve meeting due next week.
The cable has been retaining a bullish bias since the beginning of the week. The pair was last seen flirting with the 200-DMA just below the 1.3800 handle during the European hours. a decisive break above this barrier on a daily closing basis would mark some improvement in the short-term technical picture. However, the key hurdle for sterling bulls arrives at 1.3850 where the 100-DMA lies. As long as the prices stay below this level, the upside potential is limited. For the time being, the technical picture looks neutral in the short term as the daily RSI is directionless around 58 while the pair itself keeps flirting with the 20-week SMA. If the pound fails to overcome the 1.3800 level, the immediate support should be expected at 1.3760, followed by the 1.3735 region and the 1.3700 figure. Despite the ascent looks modest and indecisive, it looks like the path of least resistance for the time being is to the upside.
USDJPY extends the bounce from the 113.40 area on Tuesday. The pair advanced to the 114.00 figure during the European hours, trading 0.28% higher on the day. The dollar could retain the bullish bias to finish the day above this psychological level if the USD index stays afloat during the North-American session. In this scenario, the prices could regain the 114.20 area to retarget four-year highs seen last week around 114.70. Should the selling pressure reemerge anytime soon, the immediate support could be expected at 113.70, followed by the 113.40 region. On the hourly charts, USDJPY was last seen flirting with the 200-SMA, with the overall technical picture looking bullish. In the longer term, the pair looks ready for another rally towards fresh long-term tops around 115.00.
Following a five-day winning streak, gold prices turned negative on Tuesday as the USD index is edging higher on the back of rising US Treasury bond yield. At the beginning of the week, the XAUUSD pair exceeded the $1,800 barrier but now struggles to hold above this psychological level as the downside pressure has reemerged. In the short term, the pair needs to hold above $1,800 in order to preserve recent gains and revisit early-September highs seen last Friday around $1,813. The immediate support is represented by the 100- and 200-DMAs around $,1790. As long as the prices stay above these moving averages, downside risks are limited. As of writing, the bullion was changing hands around $1,803, down 0.12% on the day. On the weekly charts, however, gold prices are holding in positive territory so far.