EURUSD is on the defensive for the second day in a row on Monday as the greenback demand has picked up across the board after a massive sell-off witnessed during the last weeks. As a result, the common currency retreated from fresh two-year highs marginally above the 1.19 handle and now threatens the 1.17 figure. A break below this support could bring the 1.16 level back into market focus. The daily RSI has exited the overbought territory, which implies the pair could extend the downside correction in the short term. In a wider picture, the bullish trend remains intact.
GBPUSD extends the pullback from highs on Monday. The pair derives support from the 1.30 psychological level so far, and a break below this local support could bring the prices to 1.28. On the positive side, the cable continues to hold above the key daily moving averages. Meanwhile, the daily RSI has reversed south but hasn’t exited the overbought territory just yet, suggesting more losses could lie ahead in the immediate term. From a wider perspective, the technical picture remains bullish, and the pair may resume the accent after a short-term pullback.
USDJPY extends the rally from Friday and almost reached the 20-DMA earlier in the day. This moving average that arrives around 106.55 acts as the key immediate resistance, a decisive break above which is needed for further recovery. As long as the dollar remains below it, bearish risks persist in the short term. On the downside, the immediate support now arrives at 105.70 while the key level arrives at 104.00, as a break below this level could trigger another massive sell-off. On the hourly charts, the technical picture has improved once the pair has broken above the 20- and 200-SMAs.
AUDUSD was rejected from February 2019 highs around 0.7225 on Friday and has been on the defensive since then. During the recent correction, the pair retreated to the 0.71 handle, a break below this could trigger a more aggressive liquidation in long positions. As a result of the sell-off, the daily RSI reversed lower and exited the overbought territory, suggesting the Australian currency could remain under the downward pressure in the short term. On the four-hour timeframes, the recovery attempts are being capped by the 50-SMA around 0.7140. The next support arrives at the 100-SMA in the 0.7070 zone.
Gold prices registered a fresh all-time high marginally below $1,985 earlier in the day but failed to preserve gains and retreated, entering the negative territory on the daily charts. Despite a local correction, the precious metal remains bullish, with the overall upside trend staying intact. The daily RSI remains in the overbought territory, showing just a mild bearish bias, suggesting the prices could resume the ascent after a pause. The key target for bulls still arrives at $2,000. A decisive break above this level is needed for another bullish run to fresh record highs in the medium term.