The safe-haven demand for the greenback has abated somehow amid upbeat risk sentiment
The euro remains on the defensive on Monday despite safe-haven demand for the greenback has abated somehow amid upbeat risk sentiment. The pair was rejected from the 1.1770 area earlier in the day and was last seen threatening the 1.1740 intermediate support. A break below this area would bring the 1.1700 figure back into market focus. In the immediate term, the bearish potential could be limited while in a wider picture, the common currency remains vulnerable to further losses. On the hourly timeframes, EURUSD has settled below the ley moving averages, adding to the downbeat technical picture surrounding the European currency.
GBPUSD managed to overcome the 20-DMA and extended gains to two-week highs around 1.3870 in recent trading on Monday. However, the pair is yet to confirm the latest breakout on a daily closing basis as the overall strength in dollar demand persists. The next resistance is now expected at the 1.3900 figure last seen on March 19. If the cable fails to stay in positive territory by the end of the trading day, the 1.3800 figure will likely come under pressure again. However, on the four-hour charts, the technical picture has improved somehow following a break above the 100-DMA that arrives at 1.3828.
USDJPY struggles for direction on Monday while trading in a tightening range following last week’s rejection from one-year highs just below the 111.00 figure. Despite the correction from fresh tops, the pair stays steady at the current levels and could regain upside bias following some hesitation in the near term. In a wider picture, USDJPY remains within a strong bullish trend that began at the beginning of 2021. If the 111.00 level gives up, the 111.50 area will come back into market focus for the first time since March 2020. On the hourly charts, the pair was last seen flirting with the ascending 100-SMA, a break below which would be a sign of some deterioration in the immediate technical picture. the nearest support is expected at 110.50, followed by the 110.35 region.
Gold prices peaked at $1,730 on Friday but failed to extend the ascent, to turn marginally lower at the start of the week. The bullion has settled around the 20-DMA ahead of the opening bell on Wall Street, struggling to see a more robust recovery amid the persisting dollar strength. On the other hand, downside risks look limited as long as the yellow metal is holding above the $1,700 figure that represents the key support zone in the short term. In a wider picture, the pair is gradually nearing the 100-week moving average (today at $1,665), suggesting the path of least resistance in the medium term remains to the downside.
AUDUSD regained upside bias on Monday but still lacks momentum to challenge the ascending 100-DMA, today at 0.7630. The pair bounced from the 0.7600 figure earlier in the day and was last seen changing hands around 0.7620, up 0.18% for the day. Despite the current recovery attempts, the upside potential remains limited as long as the prices keep holding below the mentioned moving average, followed by the 20-DMA that arrives at 0.7680. On the downside, the inability to stay above 0.7600 would bring 2021 lows around 0.7530 back into market focus. On the four-hour charts, the Australian dollar has settled marginally above the 20-SMA while the RSI looks directionless in the neutral territory.