Should the 114.50 area give up anytime soon, USDJPY would target four-year highs around 114.70, followed by the 115.00 figure
The USD index regained upside momentum on Monday to climb to two-day highs above 94.00 as risk-on tone has abated amid weak economic data out of China. Against this backdrop, EURUSD started the week on the back footing. The pair failed to challenge the descending 20-DMA last week to turn negative on Monday. The common currency topped around 1.1625 to get back below the 1.1600 figure where the 1.1570 zone acted as intraday support. It looks like the euro may see deeper intraday losses if the mentioned support zone gives up. At this stage, the bullish potential is limited as long as the pair stays below the 1.1640 region. On the four-hour timeframes, EURUSD has settled below the key moving averages while the RSI looks directionless, suggesting the near-term technical outlook is neutral for the time being.
The cable peaked at one-month highs around 1.3770 on Friday before retreating partially at the beginning of the week. The pair slipped to the 1.3730 area on Monday amid the resurgent dollar strength. However, the downside pressure looks limited at the moment, with the pound staying relatively upbeat. On the other hand, the pair needs to overcome the 100- and 200-DMAs, today at 1.3810 and 1.3840, respectively, in order to extend the recovery from late-2020 lows seen around 1.3400 in late-September. On the weekly charts, the pair is about to flirt with a slightly descending 20-week SMA, today at 1.3790. A decisive break above this moving average would pave the way towards more robust gains. However, as the dollar remains within a bullish trend, it looks like GBPUSD could stay under this SMA for the time being.
USDJPY clings to three-year highs above the 114.00 figure. The pair now faces a barrier represented by the 114.50 area. Should the upside momentum persist in the near term, the greenback may challenge this intermediate barrier to target four-year highs around 114.70. On the downside, the nearest significant support is represented by the 114.00 figure, followed by the 113.70 area and the 113.20 region. Despite the overbought conditions, it looks like the dollar could see further gains in the near term. Should the 114.50 area give up anytime soon, the prices would target the mentioned long-term tops, followed by the 115.00 figure. On the hourly charts, the prices have settled above the 20-SMA, looking bullish.
Gold prices were rejected from the $1,800 psychological figure last week and have been on the defensive since then. Following a plunge witnessed on Friday, the precious metal keeps losing ground at the beginning of the week. During the European hours, the bullion extended losses to the $1,760 region where the 20-DMA lies. The daily RSI is pointing lower in the neutral territory, suggesting the XAUUSD pair could see deeper losses in the near term. Should the mentioned moving average give up anytime soon, the prices could challenge the $1,750 area, followed by the $1,735 intermediate support zone. On the weekly timeframes, gold prices keep flirting with a slightly ascending 100-SMA while holding below the 20-SMA for over a month already.
USDCHF briefly plunged below the 0.9200 figure last week to bounce eventually. On Monday, the pair recovered to the 0.9275 region where the 20-DMA arrives. The dollar needs to regain this moving average in the short term in order to extend the ascent towards the 0.9300 figure that capped bullish attempts last week. On the downside, the immediate support arrives around 0.9240, followed by the 0.9220 region and the 0.9200 figure. On the four-hour timeframes, the dollar was last seen targeting the 20-DMA with the RSI pointing north, which implies that the pair could at least preserve the bullish bias in the near term.