The euro is now back above the 20- and 200-DMAs but is yet to confirm the local breakout on a daily closing basis
EURUSD slipped to 1.1870 earlier in the day before bouncing as the greenback turned lower versus most rivals amid weaker demand for safe-haven assets. As a result, the euro climbed back above the 1.1900 figure but still failed to overcome the 1.1920 region that represents the immediate resistance. On the positive side, the common currency is now back above the 20- and 200-DMAs but is yet to confirm the local breakout on a daily closing basis. On the hourly timeframes, the technical picture has improved significantly in recent trading, with the RSI pointing north. If the pair managed to hold above 1.1900 in the immediate term, further gains could be expected.
GBPUSD derived support from the ascending 100-DMA earlier in the day before rising to 1.3760 during the European hours. Now, the 20-DMA (today at 1.3800) is back in market focus, but it looks like the pair could struggle to extend gains in the short term, with downside risks persisting. The mentioned moving average represents the immediate target to sterling bulls while the nearest significant support arrives at 1.3680 where the 100-DMA lies. On the four-hour timeframes, the RSI reversed north while the prices exceeded the descending 20-SMA, adding to the upbeat short-term technical picture at this stage.
USDJPY fell to a session low of 109.28 before bouncing slightly in recent trading. The pair peaked just below the 110.00 handle on Friday to turn bearish today. The dollar is now back below the 20-DMA while the daily RSI extends its correction from overbought conditions. It looks like the prices could stay under some pressure in the near term, but downside risks look limited as long as the pair remains above the 109.00 figure that represents the key immediate support now. In a wider picture, USDJPY could regain bullish impetus to get back to one-year highs seen around 111.00 in late March.
Gold prices struggle to switch into recovery mode despite dollar weakness. The precious metal was rejected from the $1,760 area late last week and has been on the defensive since then. Today, the bullion has settled near the flat-line around $1,742 after a dip towards the 20-DMA in the $1.730 area. As long as the XAUUSD pair derives support from this moving average, downside risks look limited. At the same time, the bullish potential will likely remain capped by the mentioned local peaks. In the longer term, the yellow metal may retarget the 100-DMA above $1,800 if a bearish reversal in the greenback is confirmed.
AUDUSD erased early losses to turn positive on the day due to dollar weakness. Despite the bounce, the pair lacks upside momentum to challenge the 0.7650 area where the 20- and the 100-DMAs converge. At the time of writing, the Australian currency was changing hands around 0.7632, up 0.16% for the day. The pair could come back under the selling pressure as the Aussie will likely need an extra catalyst to overcome the mentioned barrier. Furthermore, the downside potential surrounding the greenback looks limited at this stage. On the four-hour charts, the prices have faced local resistance represented by the descending 100-SMA. On the downside, the immediate support arrives at 0.7600.