The common currency needs to hold above 1.2100 on a daily closing basis in order to refrain from fresh losses in the short term
The euro erased early losses to turn slightly positive on the day in recent trading as the greenback started to lose its steam despite the risk-off sentiment prevails in the global financial markets. The pair bounced from the 20-DMA (today at 1.2090) and has settled marginally above the 1.2100 handle during the European hours. The common currency needs to hold above this figure on a daily closing basis in order to refrain from fresh losses in the short term. On the hourly charts, EURUSD was last seen flirting with the 20-SMA, a decisive break above which is needed for a more decisive bounce from the mentioned lows. Otherwise, the prices could come under renewed selling pressure.
GBPUSD extended its ascent to fresh April-2018 highs on Monday as the cable remains buoyed despite the overbought conditions and the recent recovery in the greenback. The cable climbed to 1.4050 after closing at 1.4000 last Friday. It looks like the pound could see more gains in the short term before a downside correction takes place. On the other hand, as the daily RSI has entered the overbought conditions, the pair may start to retreat in the immediate term. In this scenario, GBPUSD will first derail the 1.4000 psychological level, followed by the 1.3970 region. On the upside, the next target for bulls arrives at 1.4100.
Following three consecutive days of losses, USDJPY turned positive on Monday. The pair has exceeded the 200-DMA in process, to register local highs around 105.85 before retreating slightly. Despite the recent bounce, the upside potential surrounding the greenback looks limited at this stage, with bearish risks persisting. Still, the pair is now only slightly off early-September highs above 106.00 registered last week, so a wider technical picture looks more upbeat now. On the four-hour timeframes, the greenback was last seen flirting with the 20-SMA while the RSI looked directionless in the neutral territory, which implies that the pair could struggle to climb back to the mentioned tops any time soon.
Gold prices extend the recovery from mid-2020 lows seen last Friday around $1,760. Despite the subsequent bounce, the precious metal refrains from a break above the $1,800 handle that represents the immediate resistance now. If the bullion manages to overcome this barrier in a decisive manner, the 20-DMA around $1,820 will come back into market focus. On the downside, XAUUSD derives support from the $1,780 region while the daily RSI has reversed higher, suggesting the metal could at least retain a bullish bias in the short term. in a wider picture, the prices need to overcome the 200-weekly moving average in the $1,855 area in order to see more robust gains in the medium term.
USDCHF peaked at more than two-week highs around 0.9025 earlier in the day but failed to preserve gains and retreated in recent trading. The pair slipped marginally below the 0.9000 handle that continues to represent the immediate barrier for bulls. On the downside, the dollar derived support from the ascending 20-DMA that arrives at 0.8940 today. Despite the correction following early gains, USDCHF was last seen trading 0.32% higher on the day, just around the 200-DMA. On the four-hour charts, the technical picture has deteriorated somehow in recent trading but the RSI managed to retain a slight bullish bias, suggesting the pair could at least stay afloat in the immediate term.