The common currency is yet to confirm a reversal on a daily closing basis
As risk aversion has abated, the safe-haven demand for the greenback waned on Monday. EURUSD climbed back above the 1.1700 figure and was last seen flirting with the 1.1730 intermediate resistance. However, the common currency is yet to confirm a reversal on a daily closing basis, as the recovery looks fragile at the moment. As such, the 1.1700 level remains in market focus for the time being as well as fresh early-November lows seen at 1.1663 on Friday. On the hourly timeframes, the RSI is pointing south while the prices stay below the 200-SMA, suggesting the recovery momentum has been waning already. If the 1.1730 area continues to act as resistance in the immediate term, the euro could get below 1.1700 by the end of the trading day.
The cable registered one-month lows around 1.3600 ahead of the weekend amid widespread rally surrounding the greenback. Today, the pair climbed to the 1.3670 region that is standing on the way towards the 1.3700 figure. The daily RSI is now pointing higher but the pair is yet to get back above the key simple moving averages in order to see a more sustained recovery. If the dollar continues to retreat in the short term, the pound could retarget the 200-DMA, today at 1.3787, followed by the 20- and 100-DMAs that arrive at 1.3828 and 1.3918, respectively. In a wider picture, as long as GBPUSD stays below the 1.3900 figure, upside risks are limited.
USDJPY extends its pullback from last week’s lows seen around the 109.10 area. Today, the pair climbed back above the 20-DMA and was last seen flirting with the 110.00 figure, a break above which would pave the way towards the 110.20 area, followed by the 110.60 region. On the downside, the immediate support is now represented by the mentioned simple moving average that arrives at 109.80. As long as the greenback stays above this zone, downside risks are limited at this stage. In a wider picture, the outlook for the pair remains relatively upbeat as long as the prices stay above the 20-week SMA, today at 109.70. In the immediate term, the bullish potential looks limited, with the RSI pointing just slightly higher in the neutral territory.
XAUUSD is trending higher on Monday, flirting with the 20-DMA. The precious metal continues to struggle for direction while staying below the $1,800 figure that represents the immediate target for bulls. As long as the bullion stays below this level, upside risks are limited. On the downside, the immediate support is represented by the $1,770 region that capped the decline last week. On the four-hour charts, the technical picture looks neutral, with the XAUUSD pair being stuck between the key moving averages while the RSI looks directionless around the 57 mark. The bullion was last seen changing hands around $1,788, extending its consolidative pattern.
The Aussie refreshed early-November lows around 0.7105 on Friday to bounce to the 0.7140 at the close. Today, the pair extended the recovery, approaching the 0.7200 figure during the European hours, with the 0.7180 representing the immediate resistance. If the prices manage to overcome this barrier in the short term, the 0.7230 region will come back into market focus. On the four-hour charts, the Australian dollar was last seen flirting with the 20-SMA, a decisive break above which would pave the way to more solid gains. As long as AUDUSD stays below 0.7200, downside risks continue to persist despite the current bounce from lows. In a wider picture, the prices need to settle above the 200-week SMA (today at 0.7220) to confirm a reversal following the recent plunge.