The pound is yet to confirm the latest recovery above the 1.3500 figure on a daily closing basis
The dollar has been on the defensive since Friday as the demand has waned following a rally towards fresh 2021 highs. against this backdrop, EURUSD has been retaining a bullish bias since Friday to regain the 1.1600 figure in recent trading. The pair was last seen changing hands around 1.1610, up 0.14% on the day. If the 1.1620 intermediate resistance gives up anytime soon, the 1.1660 area will come into the market focus, followed by the 1.1680 area and the 1.1700 figure. In the short term, EURUSD needs to hold above 1.1600 on a daily closing basis in order to confirm the latest recovery. Despite the recent bounce, mid-2020 lows around 1.1560 are still in the market focus, as the selling pressure surrounding the European currency could reemerge at any point.
The cable has been climbing for the third consecutive session today, erasing precious losses. The pair surged to the 1.3590 area, threatening the 1.3600 figure during the European hours. Should this barrier give up in the short term, the short-term technical outlook for the pair would improve further. At this stage, the 1.3500 mark remains in the market focus, however, as the pound is yet to confirm the latest recovery above the 1.3500 figure on a daily closing basis. Should the selling pressure reemerge, the immediate support could be expected at 1.3530. On the hourly charts, GBPUSD is within striking distance of the 200-SMA that could deter the bulls and trigger a retreat in the immediate term.
USDJPY extended losses to the 110.85 area earlier in the day before reversing. As a result, the pair climbed back above the 111.00 figure to get back to the 111.30 region during the European hours. If this intermediate resistance gives up anytime soon, the 111.50 area will come back into the market focus. As the greenback attracted buyers on a dip below 111.00, it looks like the pair would stay within a broader uptrend despite the recent bearish correction from early-2020 highs registered just above the 112.00 figure last week. Now, the immediate support arrives around the mentioned intraday lows. In a wider picture, the prices could get back to 112.00 following a profit-taking.
Gold prices briefly surged to the $1.765 area where the 20-DMA capped the upside momentum earlier in the day. The bullion failed to preserve gains and retreated to the $1,748 region during the European hours, suggesting the precious metal could come under renewed selling pressure following a short-lived bounce as the downside potential surrounding the dollar looks limited. On the four-hour charts, the XAUUSD is nearing back the 20-SMA while the RSI is pointing lower in the neutral territory, suggesting the prices could see deeper losses in the immediate term. Should this moving average (today at $1,746) give up anytime soon, the $1,730 area will come back into the market focus. The key support lies around $1,720. A break below this zone would pave the way towards nearly two-month lows.
The Kiwi has been in a recovery mode for the third day in a row on Monday as dollar demand keeps receding. The pair climbed to the 0.6965 area during the European hours and was last seen clinging to the upper end of the trading range, suggesting the prices could target the 0.7000 figure next. On the downside, the immediate support now arrives around 0.6935, followed by the 0.6900 mark. On the four-hour timeframes, the New Zealand dollar has settled above the 20-SMA while the RSI is pointing north, adding to a more upbeat technical picture. However, as the greenback remains within a broader bullish trend, the current ascent looks corrective as long as the prices stay below a slightly descending 20-week SMA, today at 0.7030.