The common currency needs to preserve gains so that to challenge the 100-day simple moving average
EURUSD surged to early-March highs around 1.2040 on Monday, now trading within striking distance from the 100-DMA that arrives at 1.2050. The technical picture has improved substantially following a break above the 1.2000 barrier that was capping gains last week. Now, the common currency needs to preserve gains so that to challenge the mentioned moving average in the short term. On the hourly charts, the RSI has entered the overbought territory while pointing north further, suggesting the euro could retain a bullish tone so far despite the overbought conditions. In case of a downside correction, the 1.2000 handle would act as the immediate support.
GBPUSD managed to overcome the 20-DMA last week and has been trending higher since then. The pair climbed to the 1.3900 figure for the first time in nearly two weeks and was last seen clinging to this immediate barrier. A decisive break above 1.3900 would pave the way towards the 1.3920 resistance zone. The daily RSI is pointing north in the neutral territory, suggesting the cable will likely retain bullish bias in the near term and could see more gains towards the mentioned hurdle. Otherwise, the 1.3840 area will come back into market focus. In a wider picture, the pair keeps trading within a limited range above the 20-week SMA.
USDJPY has been bleeding for the sixth session in a row on Monday, extending losses to early-March lows around the 108.00 figure in recent trading. The selling pressure surrounding the dollar has intensified today, pointing to further losses at least in the short term. If the mentioned level fails to lend support to the pair, the 107.80 intermediate support will come back into market focus. On the negative side, USDJPY keeps trading below the 20-DMA that turned into resistance last week. Furthermore, the dollar is now below the 200-SMA on the weekly charts, adding to a downbeat technical picture. On the upside, the immediate resistance is now represented by the 108.80 region.
XAUUSD keeps rallying for the third day in a row on Monday, extending gains to nearly two-month highs around $1,790 in recent trading. Now, as the bullion extends a bounce from the 20-DMA, the next bullish target is expected around $1,803 where the 100-DMA lies. a decisive break above this moving average would improve the technical picture substantially. On the four-hour charts, the precious metal is now well above the key moving averages while the RSI has already entered the overbought territory, suggesting a pullback from the mentioned highs could be expected in the near term.
USDCHF slipped to early-March lows around 0.9130, keeping nursing losses since reaching peaks at 0.9470 on April 1st. The pair dipped to the 0.9130 area in recent trading, staying on the defensive during the European hours on Monday. It looks like the dollar will stay under pressure in the short term, so the next bearish target represented by the 200-DMA comes into market focus. If the prices fail to stay above this moving average that arrives just below the 0.9100 figure, the pair could target the 100-DMA at 0.9046 last seen two months ago. On the four-hour charts, the greenback has settled below the 20-SMA, adding to the downbeat short-term technical picture.