The euro may dip below the 1.1570 intermediate support to retarget 1.1550 during the North-American session
The euro peaked marginally above the 1.1600 figure earlier in the day, but failed to preserve gains and retreated back to the flat-line during the European hours. The inability to break above the 20-DMA suggests the common currency still lacks the upside momentum to stage a more sustained and robust recovery from fresh mid-2020 lows seen last Friday. EURUSD pair has settled around 1.1585 despite the dollar stays on the back foot across the market on Tuesday. Furthermore, the pair could enter negative territory if dollar demand reemerges later today due to fresh economic data out of the United States. In this scenario, the prices may dip below the 1.1570 intermediate support to retarget the 1.1550 region during the North-American session.
GBPUSD extends the recovery from late-September lows seen late last week around 1.3425. On Tuesday, the pair extended the ascent to 1.3590, facing the immediate resistance represented by the 1.3600 figure. As the greenback lacks safe-haven demand and the daily RSI is pointing north in neutral territory, it looks like the cable could see more gains in the near term. However, failure to make a decisive break above the 1.3600 level could put the pair back under selling pressure. On the four-hour timeframes, GBPUSD is now back above the descending 20-SMA while the RSI sees a slight upside bias, suggesting the pair could at least try to challenge the mentioned immediate barrier today. In a wider picture, the pair has been capped by the 20-week SMA since June.
USDJPY has been losing ground for the fourth day in a row on Tuesday. The pair dipped below the 113.00 figure to register one-month lows around 112.70. As of writing, the dollar was changing hands around 112.85, down 0.31% on the day. The daily RSI is pointing south in neutral territory, suggesting there is room for further losses in the short term. Should the downside pressure intensify further in the near term, the prices would target the 112.20 region, followed by the 112.00 figure. On the upside, the immediate barrier for USD bulls arrives at 113.00 and then around 113.20. On the hourly timeframes, bearish risks prevail, as the RSI retains a negative bias while the prices have settled below the descending 20-SMA.
USDCAD has been struggling to overcome the 200-DMA these days while staying above the 20-DMA, thus consolidating within a local trading range. The pair is little changed on Tuesday, struggling for direction around 1.2430. At the beginning of the week, the dollar was rejected from the 1.2465 intermediate resistance and has been slightly pressured since then. If the selling pressure persists in the short term, the prices could threaten the 1.2400 figure, followed by the mentioned 20-DMA, today at 1.2385. As long as USDCAD stays above this moving average, downside risks are limited. In the longer term, the pair needs to regain the 20-week SMA (today at 1.2530) in order to shrug off the downside pressure.
USDCNH has been on the defensive since rejection from the 6.3940 area late last week. Earlier today, the pair made some bullish attempts but had to erase early gains and has settled just above the flat-line that comes around 6.3878. On the positive side, the prices keep holding above the 6.3800 figure last seen on October 27. On the upside, a decisive break above the 6.4000 would mark some improvement in the short-term technical outlook. In a wider picture, however, USDCNH stays bearish while holding below the 20-week SMA, today at 6.4490. The pair last touched this moving average one month ago but was rejected.