EURUSD has been in a recovery mode since Friday’s brief plunge to one-month lows around 1.0725. The pair has settled above 1.08 but struggles around the intraday resistance of 1.0860 that is standing on the way toward the 1.09 handle. This level is the key obstacle for bulls in the short term while an even more important barrier arrives at 1.10. The intermediate resistance in the form of the 50-DMA comes around 1.0950. At this stage, downside risks continue to persist as long as the common currency remains below the 1.09 handle. the daily RSI is pointing slightly upwards but the momentum is not strong enough to bet on further gains in the near term.
Cable jumped to one-week highs around 1.2455 earlier in the day but failed to challenge this area and has retreated slightly. Despite a local correction, the pair stays close to the higher end of the intraday range and will likely take a pause before another bullish attempt. However, the way north may turn out fairly hard, considering several resistance levels in the form of moving averages. As such, even once above the mentioned intraday highs, GBPUSD may encounter the 50-DMA around 1.2475. On the downside, the immediate support arrives at 1.24 and 1.2280.
USDJPY has accelerated its downward move on Monday, still being capped by the 20-DMA. The pair has settled just above the 107.00 handle, a break below which could bring an even more intense selling pressure in the short term. Nearly two weeks ago, the dollar received support around 106.90 and bounced. If the fractal repeats itself, the pair may soon shift into a recovery mode. However, even in this scenario, the upside potential will likely remain limited by the key moving averages. In the four-hour timeframes, downside risks prevail, and the RSI is pointing south, suggesting the dollar may challenge the 107.00 figure in the near term.
The Kiwi extended its pullback from last week’s lows on Monday. The pair has regained the 0.60 psychological level and registered intraday highs around 1.6075, where the 50-DMA lies. It looks like this moving average will cap further bullish attempts in the near term, so it’s too early to call a bottom and bet on further gains from here. Once above the mentioned moving average, the pair will target 0.61. On the downside, important support arrives at the 0.60 handle. In the short-term timeframes, the RSI shows little-to-no upside bias, suggesting the bullish potential is limited.
AUDUSD extending gains for the fourth day in a row on Monday, having registered mid-March highs around 0.6470. The pair has accelerated the rally after a recovery above the 50-DMA last week, and judging by a strong upside slope in the daily RSI, the Aussie could add to its gains in the near term. Should the prices get back above 0.65, the Australian currency will retarget the 100-DMA around 0.6575. In the weekly timeframes, the technical picture continues to improve either, however, the pair remains below the 50-SMA that arrives at 0.6735.