The common currency continues to retreat from the 20-weekly moving average, adding to a bearish outlook
EURUSD failed to extend the recovery seen on Friday, to turn negative again at the start of the week. The euro remains on the defensive while staying below the 1.1800 figure that represents the immediate barrier for euro bulls. Furthermore, the pair is threatening 2021 lows in the 1.1760 area that has been acting as support so far. A break below this level would pave the way to 1.1745, followed by the 1.1700 figure last seen in November. On the hourly timeframes, the upside momentum is being capped by the 20-SMA while the RSI looks topo volatile to indicate the further direction in the short term. In a wider picture, the common currency continues to retreat from the 20-weekly moving average, adding to a bearish outlook.
GBPUSD has been climbing for the third day in a row on Monday as the sterling stays relatively resilient against the backdrop of a strong dollar. The pair has regained the 1.3800 figure in recent trading and was last seen targeting the 20-DMA, today at 1.3868. a decisive break above this moving average would add to a more upbeat technical picture surrounding the pound. However, further gains could be limited, as dollar demand persists, capping the bullish potential in the pair. On the four-hour charts, the prices are now stuck between the 100- and 20-SMAs, suggesting GBPUSD could spend some time in consolidation before deciding on the further direction.
USDJPY rallied to fresh mid-2020 highs around 109.85 on Friday before retreating slightly. Today, the pair turned marginally lower after failed attempts to settle above the 20-hour SMA in recent trading. Despite the upside momentum has waned somehow, the bullish potential persists, signaling the pair could climb to fresh multi-month highs after some consolidation. Of note, USDJPY is holding above the 109.00 figure, adding to the upbeat tone surrounding the greenback. The immediate support is now represented by the 109.40 region while the key support arrives at 108.60 where the ascending 20-DMA lies.
The Kiwi bounced from November lows on Friday but failed to extend the recovery, to settle just below the 0.7000 figure on Monday. As such, the pair turned flat on the daily charts following a dip to local lows around 0.6970. At this stage, the recovery potential looks limited as long as the New Zealand dollar stays below the 0.7000 psychological level. In a wider picture, a significant barrier is represented by the ascending 100-DMA that arrives at 0.7122, followed by the 20-DMA (today at 0.7138). On the downside, the Kiwi needs to hold above the 0.6960 region in order to avoid a dip to fresh 2021 lows below 0.6940.
AUDUSD keeps climbing since Friday but the upside momentum has slowed substantially as dollar demand persists. During the recent bounce from lows, the pair has exceeded the ascending 100-DMA. However, the prices still struggle to overcome the 0.7650 intermediate resistance, a break above which would pave the way towards the 0.7700 figure, followed by the 20-DMA that has been acting as resistance since an abrupt plunge witnessed one month ago. On the four-hour timeframes, the Australian dollar has settled above the 20-SMA while the RSI looks directionless in the neutral territory, which implies that some consolidation could take place before making fresh bullish attempts.