The US currency remains vulnerable to further losses in the near term
EURUSD
The US dollar looks steady on Tuesday after a modest decline witnessed during the previous session. Earlier, the USD index rebounded from more than one-year lows in the 100.55 area, facing the immediate resistance around the 101.80 zone these days. The greenback lacks the recovery momentum and remains vulnerable to further losses in the near term. The buck seems to have found a local bottom around the mentioned lows, trying to attract demand on a dip. The DXY now holds above the 101.50 immediate support zone in anticipation of fresh drivers. As the buck bounced, EURUSD came off mid-2023 highs seen last month around 1.1200. As a result, the daily RSI has exited the overbought territory, looking unbiased during the European trading on Tuesday. The euro still looks elevated at the current levels, but should USD demand reemerge, the pair may see a local downside correction. The single currency was last seen changing hands around 1.1063, down 0.07% on the day.
GBPUSD
The pound retains mostly bearish bias, retreating from March 2023 highs seen last month. The pair briefly jumped to the 1.3265 region before retreating partially. Even as the bullish momentum has waned, the pair keeps holding firmly well above the key SMAs. The cable looks set to resume the rally if dollar weakness remains in place in anticipation of a Fed rate cut. On the four-hour timeframes, the price has settled below the descending 20-SMA, while the RSI has exited overbought territory, showing a bearish bias, suggesting the cable could struggle to resume the ascent in the near term. In a wider picture, the technical outlook remains bullish, with GBPUSD staying relatively close to the mentioned tops. In recent trading, GBPUSD was changing hands around 1.3129, down 0.15% on the day. On the upside, the immediate significant resistance is now represented by the 1.3155 region, followed by the 1.3200 figure. While above the 200-week SMA, today at 1.2847, bearish risks are limited.
USDJPY
The USDJPY pair turned lower on Tuesday after four bullish sessions in a row witnessed amid broad recovery in the US dollar demand. Earlier in the day, the greenback faced a local resistance in the 147.20 area where sellers reemerged to push the prices to the 146.00 region. USDJPY still lacks the upside momentum, suggesting downside risks surrounding the dollar continue to persist. During the European session, USDJPY has settled around the 20-DMA, trying to minimize losses while staying negative for the day. Earlier, the ascent was capped above the 147.00 figure that represents the immediate upside target now. As such, the pair remains vulnerable to fresh losses in the near term. In the immediate term, a daily closure above 146.00 would somehow improve the technical outlook. The pair was last seen changing hands around 146.08, down 0.57% on the day. The daily RSI has exited the oversold territory, but the pair could refrain from sustained bullish attempts in the near term. Should the pressure intensify, the dollar may get back below the 145.00 figure.
XAUUSD
Gold prices stay relatively bullish after refreshing all-time highs last month. The XAUUSD pair extended gains to the $2,570 figure amid persistent dollar weakness. On Tuesday, the bullion holds in the green after a three-day slide, staying resilient as buyers remain in the game despite overbought conditions. As such, the bullion has settled slightly below historic highs, deciding on further direction. The overall technical picture remains bullish after the latest jump, especially as the dollar remains weak. The precious metal stays above the key SMAs, flirting with the $2,530 figure that represents the nearest support at this stage. The downside potential remains limited, and the broader outlook stays bullish in anticipation of a Fed rate cut. In recent deals, the XAUUSD pair was changing hands around $2,533, up 0.22% on the day. On the weekly timeframes, the technical picture stays positive, with the RSI challenging the overbought territory. On the downside, the immediate significant support is now represented by the $2,500 zone, followed by the $2,465 figure.
