EURUSD rallied to nearly three-month highs around 1.1185 yesterday but failed to preserve intraday gains and retreated partially afterwards. On Tuesday, the pair received a local support around 1.11, where the 200-DMA lies. Despite a mild bearish bias on the daily timeframes, the euro remains elevated and may post another local rally should the above mentioned moving average hold. The daily RSI is pointing slightly downwards around 70, with MAs remain neutral and don’t give any signals for future dynamics. On the upside, the common currency needs to overcome the 1.12 handle to mitigate the bearish risks.
GBPUSD has been making recovery attempts after four days of losses. The pair is challenging the 1.28 handle, a break above which will open the way towards yesterday’s highs around 1.2850. in a wider picture, the cable needs to get back above the 100- and 50-DMAs around the 1.30 psychological level. The daily RSI reversed higher but it’s not enough to call a bottom just yet, as downside risks persist both in the short-term and weekly timeframes. On the downside, the 1.2725 low in focus, as a break below it will clear the way to 1.27.
USDJPY briefly plunged to five-month lows around 107.35 but finished higher on Monday, as the dollar managed to attract buyers on a dip. As such, the prices climbed back above 108.00. the greenback encountered a local resistance around 108.50, where the 200-DMA lies and retreated back into the negative territory on Tuesday. In the daily charts, the bearish risks continue to persist as long as the greenback remains below the three key moving averages. Should USDJPY fail to hold above 107.35, the prices may challenge fresh lows around 107.00.
The Aussie has settled around a local resistance of 0.6570 following a bounce from fresh 11-year lows around 0.6430. Despite the recovery, the pair struggles to accelerate the upside momentum, with the general picture remaining bearish. On the other hand, AUDUSD has some room for a recovery in the immediate term, as the daily RSI is pointing upwards, recovering from the oversold territory. In the hourly charts, the technical picture has improved somewhat after the prices have bounced above the 50- and 100-SMAs, with the туяrest resistance coming at 0.6575, where the 200-hourly MA lies.
USDCHF extending losses for a fourth consecutive day. On Monday, the pair plunged to mid-September lows below 0.9550 and remains below 0.96 today. Despite the oversold conditions, downside risks still persist, and the recovery potential remains limited, at least as long as the prices stay below the 50-DMA at 0.9730. In a wider picture, the dollar needs to get back above 200-DMA around 0.9850 to regain the upside bias and mitigate the persisting bearish risks. Still, the daily RSI continues to point south, suggesting the pair may see deeper losses in the short term.