EURUSD extends losses from yesterday, having accelerated its bearish correction after a break below the 50-DMA around 1.10. However, the pair has encountered the intermediate support around 1.0925 and bounced partially. So far, the common currency remains below the above-mentioned moving average, and a daily close under this level could fuel more sales in the near term. also, the fact that the prices got back below the key moving averages confirms the deterioration of the technical picture in the daily charts, where the RSI is pointing lower, suggesting the downside pressure will likely persist for the time being.
GBPUSD continues to grind lower gradually after a rejection from the levels marginally below 1.25 late last week. On Tuesday, the pair registered local lows around 1.2240 and bounced back to the 1.24 area. The quick recovery shows the downside momentum is limited at this stage, and the cable may resume the ascent in the short term. However, the prices may see a deeper retreat before the bullish momentum reemerges. On the downside, the immediate meaningful support arrives at 1.2270 while the upside target remains at 1.25.
The dollar resumed the ascent after three days of losses and regained the 108.00 handle. on the way north, the pair climbed back above the 200-DMA and now faced another local resistance in the form of the 100-DMA that arrives at 109.00. The greenback rose to daily highs in the 108.70 area and trimmed intraday losses, suggesting the bulls are not ready for a more sustainable breakout just yet. Furthermore, the daily RSI shows only a modest upside bias, confirming the limited nature of the current recovery. As such, the risk of a retreat back to 107.00 persists despite the bounce.
USDCHF has found local support around 0.95 and has been rising since then. Today, the pair has accelerated its rally to the 50-DMA that acted as a resistance zone around 0.9670. Failure to break above this level could fuel a corrective retreat as this level is now the key barrier on the way to 0.98, where the 200-DMA lies. On the one-hourly charts, the prices start to show some signs of a waning momentum while the RSI is pointing south, suggesting the dollar will likely continue to retreat from the above-mentioned highs in the immediate term.
The pair briefly jumped to two-week highs marginally above 0.62 earlier in the day. However, the Aussie failed to confirm a break above this level and retreated quite aggressively. As a result, AUDUSD turned negative on the day and has derailed the 0.61 figure. As such, the daily RSI reversed south, pointing to the increasing downside risks in the near term. In a wider picture, the pair remains vulnerable to losses as long as it stays below the key moving averages, with the first one (50-SMA) coming around 0.6480. On the downside, the AUD needs to remain above 0.60 to avoid a deeper correction.