Following four days of losses, EURUSD switched into a recovery mode on Monday. The pair registered daily highs above the 1.1230 region but failed to see a sustained momentum and got back below the 1.12 handle. Still, the euro remains positive in the daily timeframes and may resume its bullish attempts should the key moving average withstand the potential downside pressure in the immediate term. the nearest support arrives at 1.11, where the 200-DMA lies. The daily reversed north and pointing slightly to the upside, suggesting the recovery potential may be unsustainable.
The pound dipped to fresh early-October lows at the start of the week after a deep decline witnessed last week. The pair is now below the key moving averages and could threaten the 1.22 handle should the selling pressure persist in the near term. on the upside, the immediate resistance mow arrives at 1.2350 and then at 1.2420, where the daily highs lie. In the weekly timeframes, the technical picture has deteriorated dramatically following last week’s losses. In a wider picture, GBPUSD needs to regain the 200-DMA around 1.27 so that to reenter the recovery zone.
USDJPY resumes the decline after a brief recovery witnessed late last week when the pair was rejected from the region, where the 20- and 200-DMAs coincide. Despite the dollar failed to confirm a break above the 108.00 figure, the technical picture has improved somewhat following a local bounce. Now, the prices need to hold above the 105.00 handle in order to avoid deeper losses. A daily close above 106.00 will act as a confirmation of the fact that the bearish risks have abated somehow for the time being.
The cross climbed to early-September highs on Monday, having exceeded the 0.91 figure. The pair has been on the rise for a fifth week in a row, suggesting the euro has settled within a medium-term bullish trend. Still, considering the overbought conditions, the pair is yet to confirm a break above 0.91 on a daily closing basis. Otherwise, the risk of a downside correction will rise. Besides, the RSI in the daily and weekly timeframes is starting to show some signs of exhaustion in the overbought territory, suggesting the upside momentum is limited at the current levels.
The Aussie has been driven to fresh late-2008 lows, with the selling pressure seems to be persisting after five days of losses on a row. The pair has pierced the 0.61 level and registered long-term lows around 0.6080 before a slight bounce. As a result, the daily RSI has dipped below the 17 figure but still pointing to the downside. As long as the pair remains under the key moving averages arriving above 0.67, the bearish risks will persist while bounces will likely be shallow and modest.