The euro has been trading below the descending 20-DMA since early-June, which is a bearish technical signal in the medium term
EURUSD turned marginally positive for the day during the European hours, holding just below the 1.1800 key immediate barrier. The euro has been trading below the descending 20-DMA since early-June, which is a bearish technical signal in the medium term. It looks like the common currency would continue to struggle following two consecutive weeks of losses as the greenback remains on a relatively firm footing due to its safe-haven status along with hawkish hints from the Federal Reserve. If the pair fails to hold above the 1.1750 area, the 1.1700 handle would come into market focus. In a wider picture, the technical outlook keeps deteriorating as well.
The cable regained upside bias on Monday and was last seen flirting with the 20-DMA that arrives just under the 1.3800 figure. If this barrier gives up anytime soon, the pair would target the 1.3860 area that represents the intermediate hurdle on the way towards the key 100-DMA that comes around 1.3920. On the downside, the pound needs to hold above the 200-DMA in order to stay afloat in the coming days. Of note, the daily RSI is now pointing north in neutral territory, suggesting GBPUSD could at least retain a bullish bias in the near term. On the four-hour charts, the technical picture looks fairly upbeat as well.
USDJPY failed to hold above the 20-DMA to turn negative on Monday. The pair dipped to the 110.10 area earlier in the day before trimming some intraday losses in recent trading. The dollar was last seen changing hands at 110.25, down 0.24% for the day. The pair now needs to hold above 110.00 in order to avoid deeper losses in the days to come. It looks like the greenback would regain upside bias following the current retreat, to get back above the mentioned moving average that arrives at 110.35 today. On the hourly timeframes, the RSI is pointing lower while the prices are stuck between the key moving averages, suggesting the near-term technical outlook is neutral for the time being.
USDCHF was rejected from the leaks above 0.9200 on Friday to turn negative at the start of the week as the dollar came under some pressure despite the prevailing risk-off sentiment across the financial markets. The pair retreated towards the 0.9165 area earlier in the day to trim some losses in recent trading. Still, the greenback remains on the defensive and could see deeper losses before staging a local reversal. On the weekly charts, downside risks are limited as long as USDCHF stays above the 20-week SMA that arrives at 0.9155. If this moving average gives up, the near-term technical outlook would deteriorate further.
USDCAD remains stuck within a range, holding between the 200- and 20-DMAs. The pair has settled around the flat-line on Monday, struggling for direction. The prices were last seen changing hands at 1.2555, off intraday highs seen at 1.2590. On the positive side, the pair continues to hold above the ascending 20-DMA which has been acting as support since early-June. As long as the dollar stays above this moving average, downside risks are limited. On the upside, USDCAD needs to make a decisive break above the 20-DMA that arrives just above the 1.2600 figure. Then, the pair could retarget the 1.2670 intermediate resistance, followed by the 1.2700 figure.