If the pressure surrounding the euro intensifies, the prices could threaten last week’s lows around 1.2060
EURUSD
EURUSD opened the new trading week on the defensive as the greenback looks steady despite risk sentiment has improved following last week’s sell-off in global stocks. The pair slipped below the 1.2100 figure during the European hours while holding above the 1.2080 area so far. If the bearish pressure surrounding the common currency intensifies any time soon, the prices could threaten last week’s lows around 1.2060. On the upside, a recovery above the 1.2100 level would bring market focus back to the 20-DMA, today at 1.2160. As long as the pair stays below this moving average, downside risks persist.
GBPUSD
GBPUSD stays marginally higher on Monday, keeping above the 1.3700 figure after a rejection from long-term highs registered just below the 1.3760 area earlier in the day. The cable continues to hold above the 20-DMA that has been acting as support since late-December. On the hourly chart, the pound has already retreated to the 100-DMA, a break below which would turn the 1.3700 level into support. The RSI in the same timeframes has reversed lower, suggesting the least path of resistance at this stage is to the downside. If so, the pair could target the mentioned 20-DMA that arrives marginally below 1.3650 today.
USDJPY
USDJPY keeps rallying for the fourth day in a row on Monday as the safe-haven demand for the Japanese currency remains muted. The pair climbed to fresh mid-November highs just below the 105.00 handle in recent trading while clinging to the upper end of the trading range during the European hours. If the upside pressure persists in the short term, the dollar could challenge this barrier, however, a daily close above this level looks unlikely as profit-taking could make the pair give up some gains later in the day. Of note, the daily RSI is nearing the overbought territory, which implies that a downside correction could take place after the current rally.
XAUUSD
Gold prices faced local resistance around the $1,871 level earlier in the day before retreating. Still, the precious metal was trading marginally higher on the day during the European hours, having settled between the 20- and 200-DMAs. On the downside, the immediate support is now expected at $1,850 where the mentioned 20-daily moving average lies. If the bullion manages to hold above this level in the short term, a mode decisive bounce could be expected. On the other hand, the inability to challenge the 100-DMA (today at $1,878) suggests the upside potential remains limited.
NZDUSD
The Kiwi retains a bullish bias for the third day in a row on Monday. Still, the pair lacks the upside momentum to make a decisive break above the 20-DMA, today at 0.7190. The New Zealand dollar needs to climb above the 0.7200 handle in order to stage a more robust bounce from last-week lows in the 0.7100 area. On the four-hour chart, there are some early signs of weakness as the pair has retreated from intraday highs seen at 0.7200 earlier in the day. The prices have settled between the 20- and 100-SMAs in recent trading, and it looks like NZDUSD will refrain from a mode decisive bullish attempt in the short term.
