The daily RSI reversed north, suggesting the euro could preserve a modest bullish bias in the short term
EURUSD dipped to fresh April lows around 1.1800 ahead of the weekend before bouncing back into positive territory by the end of the trading week. On Monday, the common currency climbed to the 1.1880 area that now represents the immediate resistance on the way towards the 1.1900 barrier. As long as the pair stays below this level, upside risks are limited in the short term. On the positive side, the daily RSI reversed north, suggesting the euro could preserve a modest bullish bias in the short term. On the downside, the immediate support now arrives at 1.1855 where the 20-SMA on the four-hour timeframes lies. On the hourly charts, the price has recovered above both the 20- and 100-SMAs, adding to a more upbeat near-term technical picture.
The cable extends its recovery from mid-April lows seen at 1.3730 on Friday. The pair climbed to the 1.3860 area on Monday and it looks like the pound is ready to see more gains in the short term amid broad-based weakness surrounding the greenback. In this scenario, GBPUSD would target the 1.3900 barrier next while the key resistance arrives at 1.3955 where the 20- and 100-DMAs converge. The pair needs to see a decisive break above this hurdle in order to retarget the 1.4000 figure. On the downside, the immediate support is now expected at 1.3830, followed by 1.3815 and the 1.3800 mark.
USDJPY continues to retreat from more than one year highs seen at 111.65 on Friday. The pair dipped back under the 111.00 figure to extend losses to 110.80 during the European hours on Monday. For the time being, the downside potential looks limited, but should the pressure intensify any time soon, the ascending 20-DMA (today at 110.40) will come back into market focus. This moving average is followed by the 110.00 figure that represents the next support zone. On the four-hour timeframes, the technical picture looks bearish as the RSI has reversed south while the price has dipped back below a slightly ascending 20-SMA.
Gold prices have been climbing north for the fourth day in a row on Monday. The precious metal was last seen flirting with the 100-DMA, a decisive break above which would pave the way for further gains in the coming days. The XAUUSD pair was last seen trading at $1,792, targeting the $1,800 barrier, followed by the descending 20-DMA, today at $1,809. Despite the bullish momentum that prevails, for the time being, the upside potential looks limited as long as the bullion remains below the mentioned simple moving average, followed by the 200-DMA that arrives around $1,830. On the downside, the immediate support arrives at $1,785.
USDCHF finished around the 0.9200 figure on Friday before bouncing slightly at the start of a new trading week. The pair faced local resistance in the 0.9230 area earlier in the day to slip back to the flat-line during the European hours as the greenback lacks recovery momentum following the recent retreat in the USD index from multi-week highs. Now, USDCHF looks directionless in the short term while in a wider picture, it looks like the price would remain buoyed as long as the pair is holding above a slightly ascending 100-DMA (today at 0.9144) last seen on June 17th. On the four-hour charts, the greenback looks bearish, however, as long as the price stays below the 20-SMA, with the RSI pointing south, adding to a downbeat near-term technical picture.