The latest FXStreet reports highlight notable movements in major currency pairs during the Asian session on Tuesday. The AUD/USD pair slid to the 0.6970 area after failing to clear the 38.2% Fibonacci retracement hurdle at 0.7024, following a previous day's inability to sustain levels above the 0.7000 psychological mark. This decline was attributed to the US Dollar's bullish undertone, supported by fading optimism over US-Iran diplomacy and renewed geopolitical risks after drone attacks reported by Saudi Arabia, Jordan, and Iraq. Despite comments from Reserve Bank of Australia Governor Michele Bullock, the AUD/USD remained confined within a familiar range over the past two weeks, with traders cautious ahead of the two-day FOMC policy meeting starting later today [1].
Technical analysis for AUD/USD suggests that the recovery from the 200-day Simple Moving Average (SMA) has lost momentum, with repeated failures at the 38.2% Fibonacci level. The MACD histogram remains marginally positive, indicating some bullish momentum, but the neutral RSI points to modest directional conviction. Analysts recommend waiting for a break below the 23.6% Fibonacci level before positioning for further downside, targeting the 200-day SMA at 0.6904 and the 0.6868 Fibonacci anchor as deeper support levels. Resistance is noted at 0.7024, 0.7073, and 0.7121 for potential upside moves [1].
Meanwhile, the EUR/JPY pair held its position above the nine-day EMA near 186.00, trading around 186.20 after two days of losses. The currency cross maintains a bullish near-term bias, supported by trading above both the nine-period and 50-period EMAs. The 14-day RSI at 57.46 suggests buyers retain control, though the daily chart shows EUR/JPY within a rising wedge, indicating a strong bearish reversal risk. Upside targets include the upper boundary of the wedge at 186.90 and the all-time high of 187.95 recorded on April 17. On the downside, support levels are at the nine-day EMA of 186.01, the lower boundary of the wedge at 185.50, and the 50-day EMA at 185.33. A break below these could lead to a bearish emergence toward the five-month low of 181.87 and the seven-month low of 180.81 [2].
Currency heat maps from both articles show the Australian Dollar was the weakest against the Euro, with AUD/EUR down -0.32% [1] and EUR/AUD up 0.29% [2]. The Euro was the strongest against the Australian Dollar, reflecting a clear shift in relative strength. No forward-looking statements or analyst opinions regarding broader market implications were provided beyond technical levels and immediate trading biases [1][2].
CONCLUSION
The Australian Dollar weakened notably against major currencies, especially the Euro, while the Euro maintained strength and a bullish bias against the Yen. Technical analysis suggests further downside risk for AUD/USD and a potential bullish continuation for EUR/JPY, though reversal risks remain. Market participants are cautious ahead of the FOMC meeting, and currency heat maps confirm the AUD's relative underperformance.