In a wider picture, the greenback remains within a bullish trend, with the euro being just slightly off mid-2020 lows
The dollar is mostly on the defensive on Tuesday despite the prevailing risk-off sentiment as the US Treasury yields keep losing ground. As such, EURUSD is now back above the 1.1300 figure and was last seen flirting with daily highs in the 1.1365 region, targeting the descending 20-DMA that arrives marginally below the 1.1400 level that represents the immediate target for euro bulls. If this barrier gives up anytime soon, the 1.1450 intermediate resistance would come back into the market focus. On the downside, the common currency needs to hold above 1.1245 in order to stay afloat in the near term. In a wider picture, the greenback remains within a bullish trend, with the euro being just slightly off mid-2020 lows registered earlier this month below the 1.1200 figure.
The pound is back in positive territory on Tuesday as the dollar came under renewed selling pressure. The pair erased yesterday’s losses to register nearly one-week highs around 1.3370 and was last seen clinging to the upper end of the range. Still, it looks like downside risks continue to persist as long as the prices stay below the descending 20-DMA, currently at 1.3433. On the four-hour charts, the cable is now stuck between the 100- and 200-SMAs while the RSI is directionless in the neutral territory, which implies that GBPUSD could lack the recovery momentum to overcome the mentioned moving average in the near term. On the downside, the nearest support is now expected at 1.3320, followed by the 1.3300 figure. Of note, the 2021 lows around 1.3280 remain in focus as long as the prices stay below the 1.3500 figure.
USDJPY has been losing ground for the fourth session in a row to derail the 113.00 figure in recent trading. The greenback dipped to nearly three-week lows around 112.70 and was clinging to the lower end of the extended trading range during the European hours, staying below the 113.00 figure. Should the downside pressure keep intensifying in the near term, a break below the mentioned lows would pave the way towards fresh October 11 lows. Now, the immediate upside target arrives at 113.00, followed by the 113.50 intermediate barrier. On the hourly timeframes, the technical picture looks bearish, with the prices trending lower below the key moving averages.
The Aussie keeps losing ground to dip to one-year lows below the 0.7100 figure earlier in the day before trimming some losses in recent trading. Following a plunge, the pair climbed back to the 0.7130 area while staying negative on the day despite UD dollar weakness. Of note, the daily RSI has entered the oversold territory and continues to point south, suggesting the pair could see deeper losses in the short term before a reversal takes place. On the upside, the initial target now arrives at 0.7155-0.7160. A decisive break above this zone would pave the way towards the 0.7190 barrier. In the immediate term, however, the Australian dollar needs to hold above 0.7130 in order to avoid fresh losses during the upcoming session in the US.
USDCHF has been falling for the third session in a row on Tuesday. The pair extended losses to nearly three-week lows below the 0.9200 figure to derive support from the 200-DMA, currently at 0.9177. The daily RSI keeps pointing south in neutral territory, suggesting there is room for further losses in the short term. A break below the mentioned moving average would add to a short-term bearish technical picture to pave the way towards the 0.9155 area, followed by the 0.9110 figure. On the hourly charts, the outlook remains negative as well. Furthermore, during the recent sell-off, the pair dipped back below the key moving averages. In a wider picture, USDCHF keeps retreating from early-April highs and could derail the 0.9100 figure before a reversal takes place.
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