Only a decisive break above the 1.1400 barrier would ease the downside pressure surrounding the European currency
EURUSD accelerated the recovery on Friday to regain the 1.1300 figure despite risk aversion triggered by a new Covid variant. Today, the pair is back under pressure but holds above the 1.1260 immediate support. In the immediate term, bearish risks continue to persist despite the recent bounce. Furthermore, the common currency failed to confirm a break above 1.1300 while the daily RSI is pointing south, suggesting the path of least resistance remains to the downside. On the four-hour timeframes, the technical picture has improved somehow since the euro has settled above the 20-SMA. However, the upside potential looks limited anyway. At this point, only a decisive break above the 1.1400 barrier, where the descending 20-DMA arrives, would ease the downside pressure surrounding the European currency.
The cable retains a modest bullish bias on Monday but struggles to the 1.3360 immediate barrier on the way towards the 1.3400 figure, followed by the descending 20-DMA, today at 1.2450. The pair was last seen changing hands around 1.3353, up less than 0.2% on the day. Should the downside pressure reemerge anytime soon, a break below the 1.3320 intermediate support would pave the way towards the 1.330 figure, followed by 2021 lows seen around 1.3280 on Friday. As long as the pound stays below at least the mentioned 20-DMA, bearish risks continue to persist. Meanwhile, the technical picture on the hourly charts continues to improve, as the prices have settled above both the 20- and 100-SMAs while the RSI hasn’t entered overbought territory just yet.
USDJPY plunged on Friday to extend losses to nearly three-week lows just below the 113.00 figure earlier today. The pair saw a bounce in recent trading but failed to get back above the 20-DMA, currently marginally above 114.00. As long as the dollar stays below this figure, downside risks continue to persist. It looks like the pair may see deeper losses before a reversal takes place. As a reminder, the greenback rallied to early-2017 highs around 115.50 last week. On the four-hour timeframes, the technical picture looks mixed, with the RSI pointing north while the pair keeps trading below the key moving averages. The immediate upside target is now represented by the mentioned moving average while on the downside, the nearest support is expected at 113.00.
Gold prices have settled above the 100- and 200-DMAs on Monday while still struggling below the $1,800 handle. The bullion finished the week with solid losses despite risk aversion while a brief spike to $1,815 triggered profit-taking in the market to send the prices to early-November lows around $1,775 earlier today. The XAUUSD pair was last seen changing hands around $1,794, up 0.57% on the day. In a wider picture, the yellow metal keeps struggling with the 20- and 100-SMAs on the weekly charts, lacking the directional impetus to settle above the $1,840 area and climb back to mid-June highs seen earlier this month at $1,877. On the downside, the immediate support now arrives at $1,785, followed by the $1.775 figure that capped the selling pressure earlier today.
The bitcoin price has been in recovery mode since Saturday. The BTCUSD pair climbed to the $58,300 area earlier in the day to settle below $58,000 in recent trading. Should the upside bias persist in the near term, the largest cryptocurrency by market capitalization would retarget the descending 20-DMA, currently at $59,600, followed by the 60,000 psychological handle that capped the bullish bias last week. However, it looks like the bullish potential is limited at this stage, and the coin could see some consolidation before deciding on the further direction. Late last week, the prices derailed a slightly ascending 100-DMA for the first time since late September, which is a bearish sign. On the positive side, the daily RSI is pointing north in the neutral territory as BTC has been trading with a bullish bias for the third day in a row.