EURUSD has been rising for the seventh consecutive day on Monday, having extended gains to late-September 2018 highs around 1.1765. Despite a small pullback since then, the euro remains ready to add to gains as the dollar doesn’t show any recovery signs just yet. As such, the 1.18 figure comes into the market focus now. It is possible that the pair will see a short-lived bearish correction before another bull run takes place. Anyway, the potential local retreat won’t derail the cureте upside trend that will likely prevail at least during this week.
GBPUSD rallied to four-month highs in the 1.2880 area and has settled around 1.2850 since then. The cable has accelerated the rally since the 200-DMA turned into resistance. As such, as long as the pound stays above this moving average around 1.27, the path of least resistance is to the upside. Once above the mentioned highs, the pair will challenge the 1.29 barrier. The daily RSI has entered the overbought territory but continues to point north, suggesting the upside momentum is not yet exhausted. In a wider picture, the 1.30 handle may soon come into market focus.
USDJPY has accelerated the bearish movement after a strong rejection from the 20-DMA last week. On Monday, the pair extended losses to the 105.20 area, the levels last seen in mid-March. Despite the pair managed to bounce slightly afterward, downside risks continue to persist while traders shift focus to the 105.00 level as the immediate support. A break below this figure could trigger an acceleration in dollar sales and send the prices to the next support zone around 104.50. On the upside, the greenback needs to reclaim the 106.00 level to retarget the mentioned 20-daily MA.
The Kiwi struggles to challenge 2020 highs registered last week but continues to cling to the higher end of the trading range, suggesting downside risks remain limited as long as the prices stay above the 0.66 handle. On the upside, the key target now arrives at 0.67. A decisive break above this level could send the New Zealand dollar to fresh multi-month highs this week as the greenback will likely remain on the defensive at least in the short term. The daily RSI has settled around the 70 level and is about to enter the overbought territory which may cause some correction. However, any significant bearish extension is unlikely, with the prices remaining well above the 50-, 100-, and 200-SMAs.
The pair briefly dipped to the 0.9165 area, extending losses to five-year lows earlier in the day. The dollar managed to bounce and even turned slightly positive on the daily timeframes since then but remains vulnerable to further losses in the days to come as the greenback remains under widespread selling pressure. The prices have recovered above the 0.92 handle but could turn this level into resistance again, with the current bullish attempts looking too modest and unsustainable. On the four-hour charts, the RSI has bounced from the oversold territory while the pair remains well below the 50- and 200-SMAs.