The euro stays just marginally above mid-2020 lows registered last month below 1.1200
The dollar is mostly positive amid a recovery in US Treasury yields, as the hawkish Fed expectations continue to keep the greenback afloat on Monday. As such, EURUSD dipped back below the 1.1300 figure earlier in the day. However, the pair managed to bounce marginally in recent trading as Treasury yields gave up some early gains. Still, the common currency remains capped by the descending 20-DMA that has been acting as resistance since mid-October. So it looks like the pair would need a significant bullish catalyst to overcome this barrier. Furthermore, downside risks continue to persist at this point, with the prices trading just marginally above mid-2020 lows registered last month below 1.1200. On the four-hour charts, the technical picture has improved somehow in recent trading, with the RSI pointing north in neutral territory.
The cable derived support just above the 1.3200 figure to stage a local bounce on Monday. In the process, the pair advanced to the 1.3260 area that represents the immediate barrier for sterling bulls, followed by the 1.3310 area. Despite the recent recovery, the pair remains on the defensive and will likely continue to struggle below the descending 20-DMA, currently at 1.3370, as the dollar remains strong. Furthermore, GBPUSD could face renewed selling pressure and refresh 2021 lows below 1.3200 later in the week should dollar demand puck up. On the hourly timeframes, the RSI looks directionless in neutral territory, suggesting the upside potential remains limited for the time being.
USDJPY bounced off the 112.50 area on Monday that capped losses last week. The pair extended gains to the 113.40 region that capped the upside momentum and triggered a local retreat in recent trading. It looks like the bullish potential would stay directionless as long as the prices remain below the 114.00 level where the 20-DMA arrives. The dollar was last seen changing hands around 113.16, up 0.34% on the day. In shorter-term timeframes, the technical picture looks neutral. The pair needs to make a decisive break above the mentioned moving average in order to retarget the recent multi-year highs seen around 115.50 last month. However, it looks like USDJPY would struggle to see more robust gains in the near term.
Gold prices look directionless on Monday after another rejection from the $1,790 region where the 100- and 200-DMAs converge. This zone represents the intermediate barrier on the way towards the $1,800 psychological level, followed by the 20-DMA, currently at $1,816. Fresh bullish attempts could attract sellers again and send the prices back to last week’s lows around $1,760. Furthermore, the bullion could derail this level should the buying pressure surrounding the greenback intensify anytime soon. On the four-hour charts, the XAUUSD pair derives short-term support from the 20-SMA, however, downside risks continue to persist for the time being. A decisive break above $1,790 would improve the technical outlook for the precious metal this week.
The BTCUSD pair plunged dramatically on Saturday to reach late-September lows around $41,000. The digital currency bounced partially since then but stayed below the $50,000 psychological figure. The coin lacks recovery momentum to overcome this level that has turned back into resistance following the recent sell-off. BTC was last seen changing hands around $47,700, holding marginally above the 200-DMA. It looks like the largest cryptocurrency by market capitalization would stay on the defensive in the near term, with downside risks persisting as long as the prices keep trading below the mentioned $50,000 level and the 100-DMA, currently at $54,500. Of note, the daily RSI is pointing slightly lower while flirting with the 30 figure, adding to a more downbeat technical picture in the short term.