GBPUSD has been losing ground for the third day in a row on Monday
The euro dipped to intraday lows around 1.1800 earlier in the day and stayed under pressure before the opening bell on Wall Street on Monday as risk aversion keeps dominating global financial markets at the start of the week. EURUSD failed to overcome the 1.1830 local resistance and slipped back to the lower end of the intraday range, threatening the 1.1800 handle. A break below this level could pave the way towards the ascending 20-DMA that acts as the next significant support, arriving at 1.1770 today. On the four-hour timeframes, the prices are back below the 20-SMA while staying above the 100- and 200-SMAs, suggesting the shorter-term technical picture is neutral despite the prevailing selling pressure surrounding the common currency.
GBPUSD has been losing ground for the third day in a row on Monday, with the pair nearing the 20-DMA that arrives at 1.2966. If this level gives up in the short term, the pair could accelerate the decline and threaten the 1.29 handle as a result. On the upside, the 1.3075 figure acts as the immediate resistance. On the positive side, downside risks are limited as long as the cable stays above the 1.30 psychological handle that was briefly derailed at the start of the European session on Monday. The daily RSI is pointing only slightly downwards, suggesting bearish risks could be limited in the short term. In shorter-term timeframes, the pound keeps above the 200-SMAs, which implies the downside potential could be capped.
USDJPY has surged back above the 105.00 handle in recent trading, extending the recovery after a plunge to the 104.30 area last week. The pair managed to bounce amid a widespread dollar demand while the continuing risk aversion could cap the local rally and prevent the prices from a more sustained and robust recovery. At this stage, the dollar needs to stage a daily close above the 105.00 figure in order to confirm the latest breakout. Otherwise, profit-taking could be expected in the near term. On the four-hour timeframes, the RSI is pointing slightly higher while the pair has exceeded the 20-SMA in recent trading, suggesting the pair could preserve the current bullish bias in the immediate term.
AUDUSD turned marginally lower on the day after another failed attempt to turn the 20-DMA into support. This moving average has been capping bullish attempts for over a month already. So, as long as the prices stay below this level (at 0.7137 today), downside risks persist while the recovery potential remains limited. In a wider picture, the 200-weekly SMA continues to act as the key resistance while in the four-hour timeframes, the Aussie is stuck between the 20- and 100-SMAs acting as the immediate support and resistance levels, respectively.
NZDUSD has been rising for the fourth day in a row on Monday despite the resurgent dollar demand. Still, the pair refrains from challenging one-month highs registered around 0.67 on Friday. As of writing, the New Zealand dollar was changing hands around 0.6680, up 0.11% on the day. If the prices fail to overcome the mentioned barrier in the short term, a retreat could be expected. In this scenario, the pair will first target the 0.6670 region where intraday lows arrive. In the hourly charts, the pair is flirting with the 20-SMA that should turn into support on a daily closing basis for the bullish continuation to take place. Otherwise, the 1.6650 next support area will come back into market focus.