The common currency remains within the short-term bullish trend and could resume the ascent following the correction
The euro bounced marginally at the beginning of the week, rebounding from last Friday’s sell-off that took the prices to lows just above the 1.2000 figure where the 20-DMA lies. Now, the recovery momentum is being capped by the 100-DMA that arrives at 1.2050. A decisive break above this barrier would pave the way towards the 1.2100 figure. In a wider picture, the common currency remains within the short-term bullish trend and could resume the ascent following some hesitation around the mentioned 100-DMA. On the downside, а break below 1.2000 would mark deterioration in the near-term technical picture.
GBPUSD bounced from mid-April lows around 1.3800 earlier in the day. During the bounce, the pair climbed back above the 20-DMA to extend gains to the 1.3880 region. A daily close above this moving average (today at 1.3840) would be a bullish sign for the sterling in the short term. Of note, the pair has been deriving support from the ascending 100-DMA since mid-last year and will likely manage to stay above this moving average, especially as the daily RSI has reversed north on Monday. Now, GBPUSD needs to overcome the 1.3900 barrier in order to climb back to the 1.4000 key upside hurdle. On the hourly charts, the pair is targeting the 1.3900 figure where the 100- and 200-SMAs converge.
USDJPY retains a bullish tone on Monday, extending gains to mid-April highs around 109.70. A decisive break above this intermediate resistance would pave the way towards the 110.00 level, followed by the 110.20-110.30 area. Also on the positive side, the prices are now back above the descending 20-DMA while the RSI keeps pointing slightly higher in the neutral territory, suggesting there is room for further gains in the short term. On the four-hour timeframes, however, the RSI has reversed to correct lower from the overbought territory while the dollar was just rejected from the mentioned highs. Now, USDJPY needs to hold above 109.30 in order to retain a bullish tone.
Gold prices bounced from the 20-DMA earlier in the day to turn positive on Monday following two days of losses. The precious metal got some relief as dollar demand has waved following the recent rally. Now, the prices need to regain the $1,790 area in order to see a stronger recovery and get back above the $1,2000 psychological level in the short term. On the four-hour timeframes, the technical picture looks upbeat as the prices have exceeded the 20-SMA while the RSI is pointing north in the neutral territory. In a wider picture, bullish attempts in the market have been capped by the 20-week SMA for the third week in a row.
The Kiwi struggles for direction on Monday following a plunge seen on Friday amid broad-based demand for the safe-haven dollar. The pair derived support from the 100-DMA but lacks the impetus to stage a recovery as the greenback remains relatively steady for the time being. The prices now face the initial hurdle at 0.7180, a break above which would pave the way towards the 0.7200 figure. On the downside, if the mentioned moving average gives up, the 20-DMA (today at 0.7140) will come back into market focus for the first time since mid-April. In a wider picture, the pair keeps trending higher, albeit in an uneven and modest fashion.