GBPUSD regained bullish momentum following three days of consolidation
EURUSD managed to hold above the 1.16 figure during the recent sell-off. The euro caught a lift today and has erased Friday’s losses. The pair regained the mid-1.1600s due to a broader downside correction in the greenback. Now, the common currency needs to surpass the 1.1700 barrier in a sustainable fashion to allow for further gains. In a wider picture, the bullish view on EURUSD persists as long as the prices stay above the crucial 200-day MA that arrives at 1.1237 today. As of writing, the euro was changing hands around 1.1670. On the four-hour timeframes, the short-term technical picture has improved somewhat after the recent break above the 20-SMA. The immediate resistance now arrives at 1.1685, followed by the 1.17 figure.
GBPUSD
GBPUSD regained bullish momentum following three days of consolidation around the 100- and 200-DMAs. The local rally has faded just below the 1.2930 level that triggered a retreat from one-week tops. As a result, the pair got back below the 1.29 handle that continues to act as resistance. Some short-covering move around the cable was triggered by Brexit optimism coupled with a weaker dollar. Still, the prices need to reclaim the 1.29 figure as support in order to confirm the local breakout. Otherwise, the pound will likely retreat toward the mentioned moving averages that converge around 1.2735. The daily RSI is pointing north in the neutral territory, suggesting the pair could extend the current recovery after a short-term pause.
USDJPY
USDJPY dipped to 105.25 earlier in the day but managed to erase nearly all intraday losses in recent trading. Still, the dollar has once again failed to overcome the 20-daily moving average that continues to act as resistance. It looks like the pair will stay directionless for the time being, as on the one hand, the dollar is lower across the board, while on the other hand, positive risk sentiment caps demand for the safe-haven Japanese yen. The longer the greenback stays below the 105.70 intermediate resistance, the downside risks persist. On the four-hour charts, the pair is stuck between the 20- and 100-SMAs, pointing to further consolidation in the short term.
The Kiwi retains a mild bullish bias on Monday but struggles to stage a more robust and sustained recovery from more than one-month lows registered last week. The pair climbed to a daily high of 0.6567 earlier in the day but failed to retain its upside momentum and gave up early gains, staying just slightly positive on the day ahead of the opening bell on Wall Street. During the recent sell-off, the prices derived support from the ascending 100-DMA. As long as the New Zealand dollar stays above this moving average, downside risks are limited. On the upside, the pair needs to turn the 0.6560 area into support in order to retarget the 0.66 immediate significant barrier.
USDCHF
USDCHF came under modest selling pressure on Monday following six consecutive days of gains. The pair peaked at late-July highs just below the 0.93 handle while deriving support from the 0.9250 region. As a result, the daily RSI reversed lower close to the overbought territory, suggesting the dollar could see some more losses before the bullish bias reemerges. In a wider picture, the technical outlook for USDCHF stays upbeat as long as the prices remain above the 20-daily moving average that arrives at 0.9146 today. On the upside, the prices could retarget the 100-DMA once above 0.93. This is the key upside hurdle for the greenback at this stage. If the downside pressure intensifies any time soon, the pair could challenge the 0.9240 area.
