The EURUSD pair could stay in consolidative mode around the 1.1800 mark in the short term
the USD index has settled in the lower end of the recent range below 93.00. The US currency is getting steady after a widespread sell-off witnessed ahead of the weekend. EURUSD briefly exceeded the 1.1800 figure for the first time since early August earlier in the day to settle marginally below this level during the European hours, as the common currency lacks upside momentum despite dollar weakness. On the four-hour charts, the RSI is trending lower while a bearish bias prevails for the time being, suggesting the pair could stay in consolidative mode around the 1.1800 mark in the short term. In a wider picture, the technical outlook has improved over the past week, but the euro is yet to preserve recent gains in order to stay bullish in the coming days.
USDJPY has settled around the flat-line where the 20-DMA lies after a short-lived dip to the 109.70 area earlier in the day. The pair finished the week higher despite Friday’s plunge, and it looks like the greenback could regain the 110.00 figure once the market digests Powell’s tone at the Jackson Hole event at the end of last week. Should the prices settle above the mentioned simple moving average in the short term, the 110.00 figure would give up, paving the way towards last week’s highs around 110.25. On the downside, the 109.70 level represents the immediate support. As long as the greenback stays above this figure, bearish risks are limited in the short term.
XAUUSD climbed to nearly four-week highs around $1,823 earlier on Monday. However, the bullion failed to preserve gains and retreated to turn negative on the day. Still, the precious metal remains above the $1,800 figure while deriving support from the 100- and 200-DMAs which arrive at $1,812 and $1,809, respectively. Should the dollar stay on the defensive in the short term, the XAUUSD would remain afloat above $1,800. On the four-hour charts, the immediate technical picture looks neutral for the time being, suggesting the yellow metal could see some consolidation before deciding on further direction. On the weekly timeframes, the bullion is flirting with the 20-SMA, a decisive break above which would add to a more upbeat technical picture in the medium term.
The Aussie surged to nearly two-week highs around 0.7318 earlier in the day before turning marginally lower on the day during the European hours as the selling pressure surrounding the US dollar has been easing gradually. The pair corrected back below the 0.7300 figure to settle just beneath the 20-DMA. On the hourly charts, the technical picture has deteriorated somehow in recent trading, as the RSI has turned lower while the price has settled below the 20-SMA, today at 0.7305. The Australian dollar needs to regain this level in order to preserve recent gains. Otherwise, the pair could extend its downside correction to the 0.7250 region, followed by the 0.7230 area and the 0.7200 figure.