It looks like the common currency will stay pressured for the time being, especially as risk sentiment is deteriorating gradually
EURUSD
The USD index came across the 99.00 figure that capped the rally in the greenback. The US currency has settled just below this level on Tuesday struggling to resume the ascent after four days of gains. It looks like the US currency would need some extra impetus to regain the barrier on the way towards two-year highs last seen around 99.40 one month ago. As such, EURUSD bounced slightly from local lows around 1.0960 to turn marginally positive on the day. However, it looks like the common currency will stay pressured for the time being, especially as risk sentiment is deteriorating gradually. The immediate resistance is now represented by the 20-DMA, currently at 1.1017. The pair was last seen changing hands around 1.0980, up just 0.01% on the day. Should the European currency fail to regain both the 1.1000 figure and the mentioned moving average anytime soon, the euro will likely resume the decline to finish lower for the fourth day in a row.
GBPUSD
GBPUSD keeps flirting with the 20-DMA, trading marginally higher on Tuesday as the dollar struggled for direction following the recent ascent. Earlier in the day, the pair once again encountered local resistance around 1.3150, a decisive break above which is needed for a more decisive rebound in the short term. The overall technical picture looks neutral for the time being, with the daily RSI directionless around the 44 figure while the pair keeps clinging to the flat 20-DMA since last week. On the hourly timeframes, the bullish bias prevails as the prices have settled above the key moving averages while the RSI is pointing north but is yet to enter the overbought territory, which implies that some more gains could lie ahead in the immediate term if the USD index continues to struggle below the 99.00 level. Otherwise, GBPUSD would slip back below 1.3100, probably, even on a daily closing basis.
USDJPY
USDJPY has been stuck within a tight trading range since the start of the week. The pair faces the immediate resistance represented by the 123.00 figure that prevents the dollar from rising back to multi-year highs registered above 125.00 last week. On the downside, the immediate support arrives at 122.40, followed by 122.25 while the key local hurdle for USD bulls arrives at 121.30. In a wider picture, the pair stays within a strong bullish trend and could challenge fresh long-term peaks after the current consolidation phase. On the four-hour charts, upside risks prevail for the time being as the dollar holds above the 20-SMA that has been capping losses since Monday. Should the prices regain 123.00 anytime soon, the dollar will target the 123.20 zone next.
AUDUSD
Aussie rallied above the 0.7600 figure for the first time since June 2021 after the RBA dropped its “patient” stance on inflation, thus shifting towards a more hawkish tone. Against this backdrop, the AUDUSD pair jumped to multi-month highs and extended the rally to 0.7640 during the European hours. The pair has been advancing north for the third day in a row on Tuesday, now entering the overbought territory amid a hawkish shift in the RBA’s tone. The pair was last seen clinging to the upper end of the trading range, suggesting the AUD could advance further in the short term before proceeding to a bearish correction amid overbought conditions. The next target for the bulls arrives at 0.7685, followed by the 0.7725 zone. On the four-hour charts, however, there are some signs of a waning bullish momentum as the RSI is correcting lower while still staying in the overbought territory, which implies that the Aussie could fail to extend the rally in the immediate term.
