GBPUSD turned marginally higher on the day after a brief dip below the 100-DMA
EURUSD plunged to two-month lows in the 1.1620 area earlier in the day before erasing losses to 1.1650 where the 100-DMA lies. This moving average acts as the immediate resistance now, and as long as the common currency remains below this region, downside risks persist in the short term. of note, the pair has broken below the 100-DMA for the first time since late-May, which is a negative technical signal for euro bulls. The daily RSI looks directionless in neutral territory, suggesting the pair could spend some time in a consolidative mode before deciding on further direction. In a wider picture, the European currency remains on the defensive as the safe-haven dollar demand persists.
GBPUSD turned marginally higher on the day after a brief dip below the 100-DMA earlier in the session. The pair bounced from one-month lows around 1.2850 and regained the 1.29 handle. However, the cable is yet to confirm the recovery on a daily closing basis as bearish risks persist as long as the prices stay below the 20-DMA, today at 1.2980. In the four-hour charts, the pound has been capped by the 20-DMA for over a week already while the RSI is pointing slightly higher, pointing to a mixed technical picture in the short term. On the upside, the immediate resistance arrives at the mentioned 20-DMA while the nearest support is expected at 1.2880 where the 100-DMA lies.
USDJPY briefly climbed to intraday highs marginally below the 105.00 handle earlier in the day and has retreated partially since then. As of writing, the pair was changing hands around 104.65, trying to decide on further direction as risk sentiment looked mixed in the global financial markets. Despite the current bullish bias, the greenback lacks bullish impetus to stage a more robust ascent these days, with downside risks persisting as long as the 20-DMA (today at 105.10) acts as resistance. On the hourly timeframes, USDJPY is nearing the 200-SMA while the RSI continues to correct lower form nearly-overbought territory, suggesting the dollar will likely struggle to stage a more sustained ascent in the short term.
Gold prices have accelerated the ascent in recent trading as dollar demand has waned somehow. As a result, the precious metal climbed to the 100-DMA, a break above which could pave the way toward the 20-DMA that arrives marginally below the $1,900 key handle. A break above this level on a daily closing basis could signal further improvement in the short-term technical picture in the market. On the downside, the bullion needs to hold above the $1,870 area in order to avoid fresh losses if the bearish bias reemerges any time soon. Otherwise, the market focus could shift to the $1,860 area where last week’s lows arrive.
The Kiwi is stuck between the 20- and 100-DMAs on Monday while retaining a bullish bias after an earlier dip to nearly two-week lows below 0.66 earlier in the day. As of writing, the pair was changing hands around 0.6630 where the 20-DMA acts as the immediate upside hurdle. If NZDUSD fails to overcome this moving average on a daily closing basis, the selling pressure could reemerge and send the pair back to the mentioned lows. On the four-hour charts, the New Zealand dollar is flirting with the 20- and 200-SMAs that cap more sustained bullish attempts for the time being.