USDJPY’s failure to hold above the 130.00 figure could trigger even more massive profit-taking
EURUSD
The US dollar stays under pressure on Monday, struggling to attract demand at lower levels and extending its retreat from multi-year peaks seen above 109.00 last month. The euro retains a bullish tone, holding above the 1.0200 figure at the start of a new week and the month, but still lacks the upside momentum to see a more robust ascent even as the descending 20-DMA has turned into support. The EURUSD pair could make fresh bullish attempts this week should the dollar continue to retreat, with investors shifting focus towards the NFP employment report due on Friday. The common currency may stay within a consolidation phase above 1.0200. Now, the pair needs to make a decisive break above 1.0280 so that to challenge the 1.0300 barrier at this stage. The euro was last seen changing hands around 1.0250, up 0.32% on the day.
GBPUSD
GBPUSD accelerated the ascent after regaining the 1.2200 figure earlier in the day. However, the pair stays shy of Friday’s peaks seen around 1.2250 for the first time since late-June. It looks like the cable needs some extra catalyst in order to overcome this immediate barrier at this stage. The path of least resistance remains to the upside, with the daily RSI preserving the upside bias in neutral territory. Also on the positive side, GBPUSD remains well above the 20-DMA, today at 1.2000. The near-term technical outlook for the cable remains bullish while above this moving average. In a wider picture, however, the pound is yet to break the downtrend that has been dominating since mid-2021. On the weekly timeframes, the technical picture remains bearish, with the prices holding below the ley SMAs while the RSI struggles for direction.
USDJPY
The USDJPY pair is the only notable mover so far today, holding around mid-June lows after a dip to the 132.00 area earlier in the day. Should the prices fail to hold above this mark in the near term, the greenback may target the ascending 20-DMA last seen nearly one year ago. As such, the bearish potential looks limited while above the ley moving average. On the four-hour charts, the pair remains well below the key moving averages while the RSI has entered oversold territory but continues to point south, suggesting the path of least resistance remains to the downside for the time being. Furthermore, failure to hold above the 130.00 figure (strengthened by the mentioned moving average) could trigger even more massive profit-taking in the days or weeks to come should the USD stay pressured by a less hawkish Fed.
NZDUSD
The Kiwi is back on the offensive after a directionless end of last week. The pair climbed to the 0.6330 zone that represents the immediate barrier for the time being. A decisive break above this region for the first time in nearly 1.5 months would pave the way towards the 0.6380 intermediate resistance on the way towards the 0.6400 mark, followed by descending 100-DMA (today at 0.6485) last seen in April. On the downside, the nearest significant support now arrives around 0.6200 where a slightly ascending 20-DMA lies. The near-teem technical outlook remains positive while above this moving average. On the shorter-term timeframes, the overall picture looks upbeat, albeit the pair is yet to overcome a number of barriers in order to shrug off the recent pressure that took the prices to mid-2020 lows last month. On the downside, the immediate support now arrives at 0.6300, followed by 0.6260.
