The common currency remains within a longer-term bullish trend despite the current correction from long-term highs
EURUSD stays on the defensive following a rejection from the 20-DMA last week in a bearish correction that took the prices to the lowest levels since December 9 around 1.2060 on Monday. The euro continues to correct lower from long-term highs as the safe-haven dollar demand continues to prevail these days. If the pressure intensifies any time soon, the prices could threaten the 1.2000 psychological level and target the 100-DMA that has been acting as support since early-November. However, the common currency remains within a longer-term bullish trend despite the current correction.
GBPUSD slipped back below the 20-DMA on Monday, extending losses amid broad-based strength in the greenback. The pair dipped to the 1.3520 area and has bounced marginally since then while retaining a bearish bias during the European hours. Should the downside pressure intensify in the short term, the cable could get back below the 1.3500 figure and challenge last week’s lows in the 1.3450 area. On the upside, the immediate resistance is now expected at 1.3600, followed by 1.3620. On the four-hour timeframes, the pound is now stuck between the 100- and 200-SMAs while the RSI is pointing marginally higher, suggesting a local bounce could be expected in the immediate term.
USDJPY struggles to see a more robust upside momentum but manages to stay above the 20-DMA these days. The pair now needs to overcome the 104.00 resistance in order to stage a stronger rebound, with the current dynamics looking neutral as long as the prices stay above the mentioned moving average, today at 103.55. A daily close above would be a confirmation of another breakout on the way toward the 100-DMA around 104.60. On the hourly timeframes, there are some signs of waning upside momentum, with the dollar flirting with the 200-SMA while the RSI reversing south, suggesting a downside correction could be expected in the short term.
Gold prices briefly dipped to early-December lows earlier in the day before a quick bounce. Since then, the precious metal has settled around $1,833, with the 200-DMA (today at $1,842) representing the immediate resistance. On the downside, the $1,800 figure remains in market focus following the recent short-lived plunge in prices. Despite the XAUUSD pair managed to regain a bullish bias in the intraday timeframes, the recovery potential looks limited in the short term as dollar demand continues to prevail. In a wider picture, gold remains on the defensive as long as the prices stay below the 20-weekly moving average that arrives at $1,880. Meanwhile, the key upside hurdle is represented by the $1,900 psychological level.
USDCHF extended gains for the fourth consecutive session in a row on Monday following a bounce from the 20-DMA that has been acting as the key support these days. The pair climbed to five-week highs around 0.8925 in recent trading while retaining a bullish bias in the intraday timeframes during the European hours. The daily RSI is pointing slightly higher in the intraday charts but the bias is too modest to bet on stronger gains in the short term. Furthermore, a local downside correction could be expected in the short term if the dollar fails to overcome the mentioned highs that represent the immediate resistance.