The USD/JPY pair is up 0.17% to near 159.70 during the European trading session on Tuesday. The pair trades higher as the US Dollar (USD) outperforms its peers ahead of the two-day Federal Reserve (Fed) policy meeting, which will start later in the day.

USD/CAD trades around 1.3665 on Tuesday, up 0.27% on the day, rebounding after briefly dipping below the 1.3600 mark on Monday. The upside move remains limited in a context shaped by diverging fundamental forces.

The EURUSD pair kept declining in its recent intraday trading, to reach the support level of 1.1690, which was an expected target in our previous analysis, amid the dominance of bearish corrective wave on the short-term basis, with its trading alongside supportive trend line for this path, besides the continuation of the negative pressure due to its trading below EMA50, intensifying the negative pressure on the price, especially with the emergence of negative signals from the relative strength indicators, despite reaching oversold levels.

The AUD/USD pair trades 0.16% lower at around 0.7175 during the European trading session on Tuesday.

Societe Generale analysts note USD/JPY failed to sustain a breakout above its multi‑year range and is consolidating above the 50‑day moving average. They highlight a crucial support zone around 158.30/157.50 and resistance near 160.50.

The GBP/USD pair extends the previous day’s retracement slide from the 1.3575 area, or over a one-week top, and attracts some follow-through selling on Tuesday.

The USD/CAD pair posts modest gains near 1.3635 during the early European trading hours on Tuesday. Uncertainty over US-Iran peace talks and the closure of the Strait of Hormuz provide some support to a safe-haven currency such as the US Dollar (USD) against the Canadian Dollar (CAD).

The Euro (EUR) pares gains against the US Dollar (USD) on Tuesday, returning to levels sub-1.1700 at the time of writing, following a rejection at 1.1755 on Monday. The safe-haven US Dollar has built up some momentum, amid the stalled Middle East conflict and with central banks’ decisions on tap.

Despite the bearish channel and momentum, the support levels at and below $1.1682 are likely to generate some buying.

NZD/USD depreciates after two days of gains, trading around 0.5890 during the European hours on Tuesday. The pair loses ground as the US Dollar (USD) advances due to increased safe-haven demand amid stalled United States (US)-Iran peace talks.