It looks like the common currency may lack the bullish momentum to retain the upside bias in the short term
Despite the European stocks continued to rally ahead of the opening bell on Wall Street, the safe-haven dollar managed to pare earlier losses. Positive risk sentiment was fueled by stronger-than-expected economic data out of China and Japan as well as by reports from Moderna. The company said that its coronavirus vaccine was found to be 94.5% effective. Still, the euro failed to extend the ascent and was rejected from one-week highs around 1.1870. As of writing, EURUSD was changing hands at 1.1841, up just 0,08% on the day. It looks like the common currency may lack the bullish momentum to retain the upside bias in the short term. On the positive side, however, bearish risks stay limited as long as the prices hold above the 20-DMA, today at 1.1783.
The same technical picture is seen in the GBPUSD pair. The pound climbed to a local high of 1.3242 earlier in the day but has lost momentum since then and turned flat in recent trading. Now, the 1.32 figure is back in market focus, as a daily close below this level would be sterling-negative in the short term. as the daily RSI looks directionless in the neutral territory, it looks like the pair could spend some time in a consolidative mode before deciding on a further direction. On the four-hour charts, cable was flirting with the 20-SMA as of writing while holding above the 100- and 200-SMAs since November 5, suggesting the downside potential is limited as well. If the selling pressure mounts any time soon, the pair could retarget the 1.31 handle.
USDJPY made another bull run at the 105.00 figure in recent trading but was rejected from local highs and retreated. Still, the pair stayed in the green and well above a seven-day high of 104.36 registered ahead of the start of the European session today. The dollar looks undecided at the current levels, while long upper and lower wicks on the daily charts imply that some consolidation could be ahead in the near term. On the upside, the key immediate resistance is represented by the 105.70 region while the nearest support arrives at 104.65 where the 20-DMA lies. in a wider picture, the greenback remains within a gradual bearish trend, continuing to follow the descending 20-weekly MA that has been capping bullish attempts since June.
USDCHF bounced from one-week lows seen just below the 0.91 handle earlier in the day. As a result, the pair turned positive on the day and created a long lower wick on the daily charts, suggesting the downside potential is limited at this stage. Also, the prices managed to recover above the 20-DMA, which is dollar-positive in the short term. Despite the recovery, the daily RSI remains directionless in the neutral territory, which implies that the bullish impetus is limited as well. On the hourly charts, the pair is stuck between the 100- and 20-DMAs, also pointing to some consolidation. On the upside, the key hurdle now arrives at 0.9175 where the 100-DMA lies. as long as the dollar stays below this moving average, bearish risks persist anyway.
USDCAD suffers decent intraday losses on Monday despite the USD index managed to bounce from earlier lows. The pair refrained from challenging the 20-DMA and came under a solid selling pressure that has intensified in recent trading. As a result, the prices spilled below 1.31 and extended losses to a local low of 0.3064. As of writing, USDCAD was changing hands around 0.3086, slightly off the mentioned lows. On the hourly timeframes, the pair that was rejected by the 20-SMA earlier was trying to regain the upside bias ahead of the opening bell on Wall Street. The greenback needs to make a decisive break above the 1.31 figure in order to trim losses further in the short term.