The 20-DMA around 1.2100 continues to act as the immediate support for the euro
EURUSD turned marginally positive on Monday following some losses seen last Friday. The dollar is back under pressure nearly across the board as upbeat risk sentiment prevails in the global financial markets. Still, the common currency lacks bullish momentum to challenge the 1.2150 local resistance zone that capped upside attempts last week. On the downside, the 20-DMA continues to act as the immediate support around 1.2100. On the hourly charts, the pair has settled above the 100- and 20-SMAs, which could be a sign that downside risks are limited at the moment. Still, the longer the euro stays below 1.2150, the higher is the possibility of a dip under the mentioned 20-daily moving average in the short term.
GBPUSD rallied to fresh April-2018 highs marginally above the 1.3900 figure while retaining a strong bullish tone during the European hours, suggesting further gains could be expected in the short term. On the other hand, the daily RSI is flirting with the 70 figure, nearing the overbought conditions, which implies that the pair could be rejected from highs and proceed to a bearish correction. In this scenario, the immediate support should be expected at 1.3865, followed by the 1.3800 handle. On the upside, if the cable manages to retain its upside bias, the next significant target for bulls should be expected at 1.4000.
The dollar bucked the trend versus the Japanese yen due to the lack of safe-haven demand on Monday. As such, the pair rallied to one-week highs at 105.40 before retreating slightly. USDJPY has been rising for the fourth day in a row already but the further upside could be limited as the prices are nearing the 200-DMA (today at 105.55) that could act as local resistance and trigger a retreat. On the downside, the prices need to hold above the 105.00 handle in order to avoid a deeper bearish correction in the short term. On the hourly charts, there are some signs of waning upside momentum.
Gold prices have been trending lower for the third consecutive session on Monday. Still, the precious metal is holding above the $1,800 handle, suggesting the downside momentum looks limited so far, the bullion was last seen trading at $1,820, slightly off intraday lows set around $1,815. On the upside, the immediate hurdle for gold bulls arrives at $1,830, followed by the 20-, 200-, and 100-DMAs at $1,839, $1,855, and $1,868, respectively. In the short term, the yellow metal will likely stay on the defensive but the 20-DMA could continue to act as support due to dollar weakness.
Following short-lived gains seen on Friday, USDCHF is back under pressure at the start of the week, with the 20-DMA staying in market focus for now. This moving average that arrives at 0.8920 today continues to cap bullish attempts while the pair is trying to hold above the 0.8900 figure, a break below which would add to the negative pressure surrounding the greenback. On the upside, a decisive break above the 20-DMA would pave the way toward the 0.8940 immediate resistance that capped gains last Friday. On the four-hour charts, the pair is stuck between the key moving averages while the RSI looks directionless in the neutral territory, suggesting the prices could spend some time in consolidation in the short term.