The euro is nearing the oversold territory, suggesting a bounce could be expected in the short term
EURUSD has been losing ground for the fourth week in a row already. The pair dipped to nearly four-month lows around 1.1865 on Monday and was retaining a bearish tone at the time of writing. As the common currency failed to hold above the 1.1900 support that has now turned into resistance, the short-term technical picture has deteriorated further. If the mentioned lows fail to provide support for the euro, the next support would be expected at 1.1830, followed by the 1.1800 handle. On the upside, the immediate resistance is now represented by the 1.1900 figure. Of note, the daily RSI is nearing the oversold territory, suggesting a bounce could be expected in the short term.
GBPUSD turned marginally positive on the day in recent trading but still staying under general pressure as the dollar keeps rising across the board. The pair has settled below the 20-DMA, a break below which added to the worsening technical picture. As the pound corrects lower from long-term highs seen nearly two weeks ago, a wider picture remains upbeat as long as the cable stays above the ascending 100-DMA that arrives at 1.3500. On the upside, the pair needs to regain the mentioned 20-daily moving average that now arrives at 1.3930. a daily close above the 1.3800 figure will somehow improve the short-term technical picture.
USDJPY has settled around mid-2020 highs in the 106.60 area, retaining a bullish tone for nearly two weeks already. It looks like the dollar could extend the rally in the short term despite the overbought conditions. The next significant bullish target arrives at 109.00 where the 100-weekly moving average lies. This figure could act as a barrier for dollar bulls and thus trigger a downside correction. If so, the pair needs to hold above the ascending 20-DMA that arrives at 106.00. On the hourly charts, the greenback continues to follow the ascending 20-SMA while the RSI was last seen nearing the overbought territory, suggesting a bearish correction could be expected in the short term.
XAUUSD extended losses to fresh June 2020 lows in the $1,687 area on Friday while holding around $1,690 today. The $1,700 figure now acts as the immediate resistance. If the downside pressure intensifies in the short term, the yellow metal could threaten the $1,670 region, a break below which would pave the way towards the ascending 100-weekly moving average, today at $1,647. Adding to the downbeat technical picture, the pair remains well below the key daily SMAs while the RSI in the short-term timeframes hasn’t entered the oversold territory just yet, suggesting there is room for further downside. A decisive recovery above the $1,710 figure would marginally improve the short-term technical picture.
USDCHF has been steadily rallying since mid-February. The pair climbed to July 2020 highs around 0.9345 area on Monday and was clinging to the upper end of the range at the time of writing. The dollar retains a strong bullish tone despite the overbought conditions, with the daily RSI exceeding the 80 figure. On the four-hour charts, the pair remains well above the key simple moving averages, adding to the upbeat technical picture. Now, the prices need to hold above the 0.9300 handle in order to confirm the latest breakout. Otherwise, a local downside correction could be expected. On the upside, the next resistance is expected at 0.9375, followed by 0.9400, and the 0.9440 area where the descending 20-weekly moving average arrives.