In a wider picture, EURUSD remains weak, staying just slightly off mid-2020 lows seen below 1.1200 a month ago
The dollar has gone into a consolidation phase on Tuesday, with the USD index hovering around 96.50. EURUSD extends its recovery, challenging the 1.1300 figure during the European hours. However, the common currency is yet to confirm the latest bounce as bearish risks continue to persist amid the ongoing pandemic. On the downside, the key immediate support arrives at 1.1230, followed by 1.1200. Should the 1.1300 level give up anytime soon, the pair would retarget the 1.1360 area that has been capping bullish attempts since the start of the month. As such, the European currency may need ab extra catalyst to overcome this barrier in the near term. In a wider picture, EURUSD remains weak, staying just slightly off mid-2020 lows seen below 1.1200 a month ago.
The cable slipped to the 1.3170 region on Monday to turn into recovery mode today as the buying pressure surrounding the greenback has eased somehow. The pair exceeded the 1.3200 figure and advance to the 1.3255 area where the 20-DMA capped gains in recent trading. A decisive break above this moving average would improve the technical picture, but the pound will hardly be able to overcome this immediate hurdle, at least on a daily closing basis. On the hourly charts, GBPUSD was last seen flirting with the 100-SMA while the RSI is now about to enter the overbought territory, suggesting the upside would be limited for the time being. Furthermore, the prices could retreat from the current levels and retarget the 1.3200 level.
USDJPY keeps oscillating around the 20-DMA, struggling below the 114.00 figure. The pair turned marginally positive on Tuesday to set intraday highs around 113.80 before retreating marginally. It looks like the greenback would stay in the consolidation phase in the short term before deciding on the further direction. On the downside, the intermediate support arrives at 113.30, followed by the 113.10 zone. As long as the prices stay above this region, the path of least resistance remains to the downside. On the four-hour timeframes, the technical picture looks neutral, with the prices flirting with the descending 20-SMA while the RSI is directionless around the 51 figure. Despite the dollar’s resilience, a decisive break above 114.00 looks unlikely in the immediate term.
Gold prices bounced from the 100-DMA that arrives just below the $1,790 region. The XAUUSD pair has already erased most of yesterday’s losses and was last seen flirting with the 200-DMA, still struggling below the $,800 psychological level. As long as the yellow metal stays below this figure, the upside potential remains limited. Should this barrier give up, last week’s highs around $1,815 will come back into the market focus. However, it looks like the bullion would continue to oscillate around $1,800 in the short term as the greenback stays resilient, trading just slightly off yearly highs. On the four-hour timeframes, the RSI has reversed marginally lower, pointing to the reemerging downside risks that could take the metal back to the mentioned lows.
Following a three-day consolidation around the 200-DMA, the bitcoin price climbed back above the $48,000 figure on Tuesday. The BTCUSD pair advanced to the $49,000 area, where the descending 20-DMA lies, before retreating marginally in recent trading. Still, the prices were clinging to the upper end of the local trading range. During the recent slide, the largest cryptocurrency by market capitalization derived support from the $45,500 area that has been acting as a strong support zone this month. Now, as demand seems to be locking up again, the technical outlook has improved somehow. However, the bullish potential remains limited as long as the coin stays below the mentioned 20-day simple moving average. A decisive break above this area would pave the way to the $50,000 psychological level seen earlier this month.