After some hesitation, the euro climbed to six-day highs marginally below the 1.13 barrier. After the recent jump, the common currency has retreated somehow but stays elevated on the daily timeframes, with the RSI pointing slightly upwards, suggesting the pair could retain its bullish tone at least in the short term. On the four-hour charts, the prices are challenging the 200-SMA, a decisive break above which is needed for a confirmation of the latest breakout. In this scenario, EURUSD may overcome this level and target the 1.1330 key resistance where the 200-weekly moving average arrives.
GBPUSD extends the retreat from last week’s highs marginally below 1.2550. On Monday, the pair plunged to one-month lows around 1.23 and remains under the selling pressure. As the prices are now below the key daily moving averages, with the RSI is pointing south in the neutral territory, cable could probe the mentioned support and thus confirm that the short-term bearish trend is intact. On the four-hour timeframes, the pound failed to cling to the 200-SMA that has turned into resistance around 1.2425. in a wider picture, the pair needs to regain the 1.25 barrier in order to shrug off the selling pressure and switch into a corrective mode.
USDJPY remains capped by the 20-DMA to start the week. The pair registered intraday highs around 107.40 earlier in the day and stays positive on the intraday charts. However, the upside potential remains limited as long as the dollar continues to trade below the mentioned moving average. On the downside, the 107.00 handle acts as the immediate support. The daily RSI is unbiased in the neutral territory, suggesting there won’t be any breakthrough in either direction in the immediate term. On the weekly timeframes, the pair remains on the defensive as long as the prices stay below the 20-SMA around 108.20.
USDCHF struggles to regain the upside momentum at the start of the week after failed bullish attempts around 0.95 seen last week. Today, the pair dipped to five-day lows around 0.9440 and bounced, trimming intraday losses as a result. If the selling pressure intensifies in the near term, the 0.9420 support will come back into market focus. At this stage, the bearish scenario looks more likely than a more robust bounce with the subsequent recovery. On the weekly timeframes, the pair continues to trend downwards after three consecutive weeks of losses.
The cross jumped to fresh three-month highs on Monday amid a widespread rally in the common currency. The pair climbed to 0.9170 and remains near the upper limit of the intraday range, signaling its readiness to extend the ascent. On the other hand, the daily RSI is about to enter the overbought territory, suggesting some profit-taking could take place at the current levels. In case of a bearish correction, the prices will encounter the initial support around 0.91. On the hourly charts, the RSI turned neutral in recent trading, suggesting the bullish impetus may be waning already.