The euro may witness a slight bounce in the short term
The USD index keeps climbing despite the persistent downside pressure in US yields as the spread of the Delta variant of the coronavirus across the world continues to underpin the risk-off tone globally. As such, the EURUSD pair dipped to the 1.1765 area before bouncing slightly in recent trading. The prices could now target the 1.1740 area if the pressure persists in the short term. The euro may witness a slight bounce in the short term, with the RSI on the hourly charts correcting higher from the oversold territory. However, as the daily RSI continues to point lower but is yet to enter the oversold conditions, it looks like there is room for further losses at this stage. On the upside, the immediate resistance is now represented by the 1.1800 figure.
The cable plunged to three-month lows as well. The pair slipped to the 1.3700 area which should withstand the selling pressure. Otherwise, the pound would see deeper losses in the coming days. On the negative side, the daily RSI is pointing lower but is yet to enter the oversold territory. Furthermore, the pair has settled below the descending 20-DMA, adding to a downbeat technical picture in the short term. Also, the cable now trades under the key moving averages in shorter-term timeframes. If the 1.3700 figure gives up anytime soon, GBPUSD would target the 1.3670 region. On the upside, the immediate upside barrier now arrives at 1.3750.
USDJPY remains stuck between the 20- and 100-DMAs, with downside pressure prevailing. The pair tried to bounce on Friday but came under renewed pressure at the start of the week amid the safe-haven yen demand. The dollar slipped to the 109.70 area after failed attempts to cling to the 110.00 figure that has turned back into resistance as a result. Now, the pair needs to regain this immediate barrier in order to retarget the 110.50 zone where the mentioned 20-day simple moving average arrives. On the weekly chart, USDJPY is now within striking distance from the 20-week SMA that comes at 109.60. As long as the greenback stays above this moving average, downside risks are limited.
Gold prices have been losing ground since Friday as dollar demand persists. The XAUUSD pair extended losses to the $1,800 area that has been capping losses so far. A break below this support zone would pave the way to the $1,793 region where the 20- and 100-DMAs converge. On the upside, the bulls need to push the bullion above the 200-DMA that arrives at $1,825 today. On the hourly timeframes, the technical picture looks neutral, as the RSI is pointing slightly higher while the prices are trying to hold above the $1,800 support area. The yellow metal needs a decisive break in either direction in order to decide on a longer-term path.
The Aussie dipped to late-November lows around 0.7350 on Monday, losing ground for the third day in a row. The pair is pressured by a stronger dollar amid the persistent risk aversion at the start of the week. If the mentioned lows give up, the prices could target the 200-week moving average that arrives around 0.7230. On the daily charts, the RSI was last seen flirting with the 30 figure and could enter the oversold territory in the short term. The Australian dollar now needs to see a bounce above the 0.7370 area in order to regain 0.7400. However, it looks like the pair would stay on the defensive in the near term, with the recovery potential looking limited for the time being.