The euro is challenging parity for the for time in more than a month
EURUSD
The US dollar extend the ascent, advancing north for the ninth session in a row. The USD index has settled just below the 108.50 zone, holding onto solid gains around mid-July highs. Against this backdrop, EURUSD is challenging parity for the for time in more than a month and could threaten multi-year lows seen last month around 1.0950 should the pressure persist in the near term. On the four-hour charts, the RSI remains in oversold territory while retaining bearish bias while the prices stay well below the key SMAs, painting a bearish short-term technical picture. After a plunge to 0.9988, EURUSD regained the 1.00 mark to shed intraday losses somehow. Still, the path of least resistance remains to the downside at this stage, with parity staying in the market focus.
GBPUSD
GBPUSD stays on the defensive for the fourth session in a row on Monday as the greenback keeps trending north these days. Earlier in the day, the cable dipped to 1.780 for the first time since late-July before bouncing slightly in recent trading. The pair rebounded towards 1.1800, staying below the 1.1900 mark after the weekend. The pound was last seen changing hands around 1.1812, down 0.12% on the day. As such, the recovery potential looks limited at this stage, especially as the pair is holding well below the 20-DMA, today at 1.2090. On the four-hour charts, the bearish momentum persists even as the RSI remains in oversold territory, suggesting the path of least resistance remains to the downside for the time being. On the longer-term timeframes, the technical picture stays bearish as well, with the prices holding below the key weekly SMAs while the RSI keeps pointing lower.
USDJPY
USDJPY has been retaining a solid bullish bias since last week. The pair advanced to three-week highs around 137.43 earlier in the day before retreating below 137.00 amid profit-taking. Still, the dollar holds well above the 20-DMA, today at 134.46. Earlier in the month, the prices managed to hold above the 100-SMA, adding to a resilient technical picture. In the near term, USDJPY needs to confirm the recent break above 137.00 for the bullish momentum to persist. A decisive break above the mentioned highs on a daily closing basis would bring long-term highs above 139.00 back into the market focus. In case of a downside correction, the nearest support should be expected around 136.70, followed by 135.90 and the 135.00 figure. As of writing, the greenback was changing hands just below 137.00, up less than 0.1% on the day.
XAUUSD
Gold price keeps bleeding at the start of the week, holding already well below the 20-DMA on Monday. Earlier in the day, the yellow metal dipped to fresh late-July lows around $1,732 and was last seen clinging to the lower end of the extended range, threatening the $1,730 support zone. The bullion looks finished the week with solid losses after a four-week winning streak, and it looks like the metal could stay on the defensive in the coming days. Should the bullion fail to hold above $1,730 in the short term, the next downside target near the $1,715 region will come back into the market focus for the first time in three weeks. On the upside, recovery above the 20-DMA, now at $1,768, is critical for any substantial recovery while the key bullish target for short-term buyers arrives at $1,800. On the weekly timeframes, the XAUUSD pair stays well below the key SMAs while the RSI keeps pointing south, suggesting the metal could stay on the defensive in the near term.
