EURUSD is licking wounds after two days of losses witnessed late last week. The pair has settled marginally above the opening levels, holding above the 1.12 handle that acts as the key immediate support. The technical picture has deteriorated since the rejection from three-month highs above 1.14. However, as long as the euro remains above the mentioned support zone, downside risks are limited. On the upside, the pair needs to regain the 1.13 level in order to retarget the mentioned highs. In the four-hour timeframes, the pair looks vulnerable as long as the prices stay below the 50-SMA.
GBPUSD is trading marginally higher on the day, flirting with the 100-DMA around 1.2530. The pair derived support from the 50-DMA once again, suggesting the prices could regain the upside momentum after the current consolidation. In this scenario, a decisive break above the mentioned moving average is needed for a recovery towards the 200-DMA around 1.2680. On the weekly timeframes, there are several hurdles for bulls in the form of the key moving averages, suggesting the potential for a more robust ascent is limited at this stage.
USDJPY has settled marginally above the opening levels after a failed attempt to challenge the 107.00 resistance. As a result of the subsequent bounce, the pair climbed back above 108.00 and has settled around 108.40. On the other hand, the greenback remains shy of the 20-DMA while above this moving average, the 100- and 200-DMAs act as resistance levels in the 108-15-108.40 region. As long as the pair remains below this area, downside risks prevail. In a wider picture, the dollar remains vulnerable as long as the prices stay below the 20-DMA while significant support arrives at 106.50.
USDCHF tried to extend Friday’s rally but encountered resistance around 0.9550 and dipped below 0.95. Despite the correction, the pair remains well above mid-March lows registered last Thursday around 0.9375. In the short term, the dollar needs to regain the 0.95 handle in order to avoid a more aggressive selling pressure that could push the prices to the mentioned multi-week lows. On the four-hour timeframes, USDCHF is following the descending 50-DMA that continues to cap bullish attempts since last week. The pair needs to make a decisive break above this moving average in order to regain the upside momentum.
AUDUSD dipped to nearly two-week lows earlier in the day but managed to bounce and has settled marginally below the opening levels in recent trading. Despite the pair trimmed intraday losses, the technical picture has been deteriorating further following a rejection from nearly one-year highs last week. As a result of the latest bounce, the prices have settled above the 0.68 handle but the Australian currency is yet to confirm the recovery above this level on a daily closing basis. The daily RSI is pointing south, suggesting profit-taking could reemerge after some consolidation.