The downtrend for GBPUSD remains intact while below the descending 200-DMA, today around 1.3300
The USD index extended the ascent to 102.83 earlier in the day before retreating partially in recent trading. The greenback is back on the offensive across the market, deriving support from market uncertainty ahead of US inflation data. The index was last seen trading around 102.57, up just 0.13% on the day. Should the 102.50 zone give up anytime soon, the buck may see a deeper retreat. EURUSD has been losing ground for the third day in a row, trading below 1.0700 on Tuesday after failure to overcome the 1.0760 barrier. The path of least resistance remains to the downside ahead of the ECB meeting. On the other hand, the bearish potential is limited while above the ascending 20-DMA, today at 1.0627. On the four-hour charts, the common currency is stuck between the key moving averages, with bearish bias persisting, which implies that the pair is unlikely to get back above the 1.0700 mark on a daily closing basis.
GBPUSD is back under pressure on Tuesday, struggling amid the resurgent dollar demand. After rejection from the 1.2580 zone at the start of the week, the pair extended losses to mid-May lows around 1.2430 earlier on Tuesday before trimming some losses in recent trading as the buck trimmed a part of early gains during the European hours. The pound was last seen changing hands around the 1.2500 mark, shedding 0.18% on the day. On the upside, the immediate target arrives at 1.2530, followed by the 1.2580 region. For the time being, the outlook for the pair looks neutral-to-bearish while in a wider picture, the pound remains within a strong bearish trend, holding just above two-year lows seen in May around 1.2150. The downtrend remains intact while below the descending 200-DMA, today around 1.3300.
USDJPY keeps rallying these days after finding a local bottom below 127.00 in late-May. The pair extended the ascent to fresh twenty-year highs on Tuesday to reach the 133.00 mark before retreating somewhat amid profit-taking. The dollar was last seen trading around 132.66, up 0.60% on the day. As a result, the daily RSI climbed into overbought territory and continued pointing north, suggesting the pair could retain bullish tone in the near term despite the overbought conditions. Adding to constructive technical picture, USDJPY is holding well above the key moving averages both in the short- and longer-term timeframes. On the hourly charts, the pair seems to be losing some bullish momentum, with the RSI turning directionless in neutral territory, but the downside potential looks limited at this stage.
AUDUSD rallied in a knee-jerk reaction to the RBA’s decision to raise the benchmark interest rate by 50 basis points against the consensus of 25 basis points. Following the unexpected decision by the central bank, the pair briefly jumped to the 0.7250 zone. However, the Aussie failed to preserve gains and retreated back to the flat-line as traders proceeded to profit-taking following a rally. AUDUSD was changing hands around 0.7187 in early European deals, shedding 0.13% on the day. The pair has settled just below the 0.7200 mark, with upside potential looking limited at this stage. However, should the US dollar fail to extend the bounce in the near term, the pair may retarget the 200-DMA, currently at 0.7255. On the downside, the immediate support now arrives at 0.7160, followed by the 0.7140 zone where last week’s lows arrive. The bearish potential is limited while above this level. In a wider picture, the Aussie continues its recovery from mid-2020 lows seen last month around 0.6830.
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