The euro could retreat below 1.2100 while the 1.2050 area should cap the potential losses and trigger a recovery
EURUSD came under some selling pressure following a rejection from the 1.2185 local resistance that capped the bullish attempts seen earlier in the day. As a result, the pair has retreated to the 1.2140 area that has been capping the pressure ahead of the opening bell on Wall Street. Despite the retreat, the common currency remains within a broader uptrend and could resume the ascent following a deeper bearish correction. In this scenario, the prices could retreat below 1.2100 while the 1.2050 area should cap the potential losses and trigger a recovery. On the upside, the key immediate resistance is represented by the 20-DMA that arrives marginally below the 1.2200 figure.
GBPUSD continues to follow the 20-DMA that represents the key immediate support for the cable. The pair is little changed today following Friday’s retreat from fresh long-term highs registered around 1.3750. As of writing, the pound was changing hands around 1.3690, struggling to hold above the 1.3700 handle amid the resurgent safe-haven demand surrounding the greenback. A daily close below this barrier could trigger another bearish correction in the coming days, so the 20-DMA (today at 1.3610) will remain in market focus for now. On the hourly charts, the pair was last seen flirting with the 20-DMA, struggling to see a more decisive upside momentum.
USDJPY extends Friday’s gains, having settled above the 20-DMA. Now, the 103.90 region represents the key barrier on the way north. The dollar needs to see a daily close above the 104.00 figure in order to extend the recovery. Otherwise, the prices could easily retreat back below the mentioned moving average. If so, the greenback may retarget the 103.30 region where last week’s lows arrive. In the four-hour timeframes, USDJPY has settled above the key moving averages while the RSI is pointing higher in the neutral territory, suggesting the pair could at least retain a bullish bias in the short term.
Gold prices have settled in the positive territory to start the week as risk sentiment deteriorated somehow during the European hours. The precious metal bounced from the 200-DMA, having exceeded the $1,860 area in recent trading. The bullion needs to make a decisive break above the 20-DMA (today at $1,873) in order to see a more robust ascent. Despite the current bullish bias, the XAUUSD pair remains stuck between the 200- and 20-DMAs while the daily RSI looks directionless in the neutral territory, suggesting the bullion could spend some time in consolidation before deciding on the further direction later this week. On the downside, the immediate support is now expected at $1,850, followed by the mentioned 200-DMA.
The Kiwi turned positive following modest losses witnessed on Friday. The pair regained the 20-DMA in recent trading and was last seen trading marginally above the 0.7200 handle. A daily close above this figure would be a confirmation of the latest recovery and could send the New Zealand dollar above the 0.7230 local resistance that has been capping gains this month. On the four-hour charts, the pair has settled above the key moving averages while the RSI is pointing slightly higher, suggesting further gains could lie ahead in the immediate term. In a wider picture, the pair remains within a broader bullish trend while staying close to the highest levels since April 2018 last seen earlier this month.