EURUSD has accelerated the rally on Tuesday and is now on the way for regaining the 1.09 handle that acts as the immediate important resistance. However, the euro may lack the upside impetus to challenge this level in the near term, and the main goal for bulls now is to see a daily close above the 1.08 figure. The daily RSI shows just a modest upside bias, suggesting the bullish momentum may be fading already. In a wider picture, the common currency needs to get back above the key moving averages in the 1.10-1.11 range.
Cable rallied to the levels close to 1.18 today after the recent dip to the lows around 1.14. Despite a local bounce witnessed on Tuesday, the pair remains in a bearish mode, with downside risks persisting as long as the pound stays below at least the 1.20 handle. The daily RSI is about to emerge from the oversold territory, changing hands around the 30 mark. As the indicator is pointing north, and the moving averages are looking mostly neutral, GBPUSD may continue its bullish attempts in the short term, with the initial target coming at 1.18.
USDJPY continues to cling to the recent highs but shows a modest bearish bias in the daily charts on Tuesday. The pair jumped to one-month highs around 111.60 at the start of the week but failed to hold above 111.00 today and has retreated partially. On the downside, there are a few important support levels in the form of the key moving averages in the 109.30-107.60 range. As long as the greenback remains above this area, upside risks continue to prevail. On the other hand, the pair has formed a symmetrical triangle in the daily timeframes, and this pattern suggests that some bearish correction could take place from here.
The Aussie has been gaining for a third consecutive day on Tuesday after a bounce from long-term lows around 0.55 seen last week. Now, the pair needs to make a decisive break above the 0.60 handle that serves as the key obstacle for bulls. Once above this level, the prices will retarget the 50-SMA on the daily charts in the medium term. Should the Australian dollar fail to extend the upside momentum from the current levels, it may quickly get back to the recent lows. Still, the daily RSI is pointing upwards and is yet to get out of the oversold territory, so upside risks prevail in the near term.
The pair failed to challenge the 0.99 handle yesterday and initiated a fairly aggressive downside correction. The dollar extended intraday losses to 0.9716 and bounced back partially. Despite the pair has trimmed its intraday losses, it remained below the 200-DMA which acts as the immediate resistance now. As a result, the prices have settled between the 200- and 50-DMAs, and a break below the latter could open the way to further losses in the near term. The daily RSI has reversed lower and is targeting the neutral zone now, suggesting the downside pressure could be limited at this stage, as long as the greenback holds above the mentioned 50-SMA around 0.9675.