EURUSD turned lower on Monday after failed attempts to confirm a break above the 1.10 handle late last week. The common currency has corrected below the 200- and 5-DMAs and the short-term technical picture has deteriorated as a result. The pair is trying to stay above the 1.09 level, a break below which may trigger a more aggressive sell-off. The daily RSI turned south after a recovery seen last week, suggesting further losses may lie ahead. On the upside, the immediate resistance now arrives at 1.0960, where the 50-DMA lies. The technical picture in the short-term charts is now looking bearish as well.
GBPUSD extended its bearish correction on Monday. The pair peaked around 1.2640 last week and has been retreating since then. Cable has retreated to the 1.24 handle where the 50-DMA lies. If the pair fails to stay above this level, the next bearish target of 1.2330 will come into focus. In case of a bounce from the current levels, the prices could regain the 1.25 barrier. However, downside risks will persist as long as the pound stays below the 100- and 200-DMAs. In a wider picture, GBPUSD needs to make a decisive break above the 50-weekly moving average around 1.2650 in order to shrug off the selling pressure.
USDJPY has been trading with a mild bullish bias at the start of the week. The pair dipped to the intraday low of 106.66 earlier in the day, where dollar demand picked up. As a result, the prices bounced but struggled to challenge the 107.00 handle which is in market focus now. One above this level, the greenback could retarget the 20-DMA in the 107.55 region. However, as long as the prices remain below the 109.00 figure, the upside potential is limited. On the downside, the key support arrives at 106.30. This level capped the downside pressure last week.
The cross plunged decently after the recent rally seen last week. The euro failed to confirm a breakout to 117.75 on Friday and turned into a corrective mode amid profit-taking at more attractive levels. Now, the pair needs to hold above the 116.30 intermediate support so that not to lose the 106.00 handle and avoid deeper losses in the short term. in the weekly charts, the RSI is pointing slightly lower, suggesting the cross may stay under some pressure before buyers reemerge. In a wider picture, the common currency needs to clear the 50-DMA around 118.20 in order to shrug off the downside pressure.
USDCHF turned positive on the daily charts after four days of losses in a row. The pair has regained the 50-DMA but is yet to confirm a local breakout on a daily closing basis as the upside momentum looks unsustainable at this stage. Should the dollar exceed the 0.9660 region, the next target of 0.97 will come back into market focus. The daily RSI has reversed higher, suggesting further gains could be ahead in the near term. on the four-hour timeframes, the RSI has bounced from the oversold territory and is now pointing upwards, which is another positive sign for dollar bulls.