EURUSD failed to challenge the 1.0870 intermediate resistance earlier in the day on Tuesday and turned red below mid-1.08s. the euro still lacks the upside momentum after two days of gains, limited by the above mentioned level. As long as the pair stays below this handle, bearish risks persist, with both the RSI and 50-DMA pointing to the downside. Un the 4-hour charts, EURUSD is nearing the 50-SMA that could act as a support should the pressure stay limited. In the longer-term timeframes, the technical picture remains bearish despite the recent bounce from long-term lows below 1.0780.
The cable has exceeded the 100-DMA during the recent trading but is yet to confirm a break above this level as the upside momentum looks unsustainable at this stage. A daily close above 1.30 will improve the short-term technical picture but this figure still acts as a resistance. Furthermore, there is a stronger resistance around 1.3040, where the 50-DMA lies. As such, despite the current rebound, downside risks still persist even as the RSI pointing slightly upwards in a neutral zone.
The pair has been suffering losses for a third day in a row on Tuesday and is now back below 111.00 following a rejection from long-term highs above 112.00 last week. The bearish momentum has slowed somehow but the RSI shows a negative bias, suggesting there is still room for further retreat, at least in the short term. In the weekly timeframes, the dollar remains elevated and well above the key moving averages. The key support now comes around 110.30, as a break below this level will open the way to 110.00.
The cross has accelerated the decline after yesterday’s rejection from the 200-DMA around 120.30. The euro dipped below 120.00 and registered local lows around 119.60. The next support arrives at 119.25 and then around 119.00. Still, the 119.60 area may cap the downside pressure and serve as an entry point for bulls should market sentiment improve any time soon. On the upside, there are a few moving averages that could cap the bullish potential once the cross shifts into a recovery mode.
USDCHF remains stuck between the 200- and 50-DMAs. The pair has been retreating for a third consecutive day but the momentum slows gradually, suggesting the prices may soon find a local bottom. On the downside, the 0.9760 area remains in focus, as a break below this level will open the way to the 50-SMA that arrives at 0.9740. The RSI doesn’t give any clues at this stage as the index stays neutral around 53. In the weekly timeframes, the technical picture has deteriorated since last week, with the 200-SMA continuing to serve as the key resistance.