EURUSD has dipped below the 20-SMA on the four-hour charts, suggesting the euro will likely continue to struggle in the short term
On Monday, the safe-haven dollar demand started to ease as risk sentiment has improved somehow in Europe while US Treasury yields are relatively steady following recent gains. As such, EURUSD stays under some pressure while deriving support from the 1.1900 figure. As long as the common currency stays above this level, downside risks are limited in the short term. On the upside, the pair needs to regain the 1.2000 handle in order to retarget the 1.2035 region where the 20- and 100-DMAs converge. On the four-hour charts, EURUSD has dipped below the 20-SMA in recent trading, suggesting the euro will likely continue to struggle in the short term.
GBPUSD keeps flirting with the 20-DMA on Monday. The pair turned marginally higher on the day but still lacks the upside momentum to overcome this moving average, today at 1.3950. If this level gives up any time soon, the 1.4000 handle will come back into market focus. Of note, sterling remains steady despite the recent dollar strength, suggesting the pair could climb back to long-term highs following the current consolidation. On the downside, bearish risks remain limited as long as the cable stays above the 1.3850 area while a more significant support zone arrives at 1.3770. On the hourly timeframes, the prices are holding above the key moving averages, which implies that downside risks are limited for the time being.
USDJPY rallied to fresh mid-2020 highs in the 109.35 region on Monday and was staying elevated during the European hours despite the daily RSI has settled in the overbought territory. On Friday, the dollar finished at the 109.00 figure that now represents the immediate support while the next target for bulls arrives at 109.70, followed by 109.85, and the 110.00 figure that will likely act as a barrier if the bullish pressure persists. On the short-term timeframes, the pair has settled above the 20-SMAs, adding to the upbeat technical picture. However, considering the overbought conditions, the greenback could struggle at the current levels, so correction risks are building gradually.
The Kiwi regained upside bias on Monday but still lacks momentum to get back above the 20-DMA that capped gains last week. The pair was last seen trading just below the 0.7200 figure that represents the immediate barrier for bulls while the mentioned moving average arrives at 0.7240. On the downside, significant short-term support is expected at 0.7150. On the four-hour timeframes, NZDUSD was last seen flirting with the 20-SMA, a decisive break below which would mark some deterioration in the short-term technical picture. The daily RSI retains a modest bullish bias, suggesting the prices may lack upside momentum to reclaim the mentioned 20-daily moving average in the short term.
USDCAD has been losing ground for the fifth day in a row on Monday. The pair dipped to fresh three-year lows in the 1.2440 area in recent trading. Despite the latest plunge, the daily RSI hasn’t entered the oversold territory just yet, suggesting there is room for further downside in the short term, if the pressure persists, the dollar could derail the 1.2400 figure before staging a bounce from fresh long-term lows. On the monthly charts, the prices are now below the ascending 100-SMA, adding to the bearish technical picture in the longer term. On the upside, the immediate resistance now arrives at 1.2470, followed by the 1.2500 handle.