EURUSD
After some hesitation, EURUSD bounced strongly and briefly touched 1.08. This level acted as a local resistance on the way higher and capped the intraday rally in the common currency. Despite the recovery, the pair remains bearish and continues to trade not far from three-year lows that were refreshed at the start of the day around 1.0635. As a result of the bounce, the daily RSI rose from the levels above 30 and points north. However, downside risks for the currency continue to persist as long as the prices stay below at least 1.09. on the downside, the immediate support now arrives at 1.07.
GBPUSD
Cable has settled in a fairly tight range after volatile dynamics seen late last week. The pair received the intraday support around 1.15 and extended gains above 1.17. This level capped the upside momentum and made the pair correct lower. As a result, the prices turned marginally negative on the daily timeframes. At the same time, the tone in the pair remains neutral as long as the 1.16 handle acts as the immediate support. In the four-hour charts, the RSI is also signaling neutral trading conditions, at least in the short term. once below 1.16, the short-term technical picture will deteriorate somehow.
USDJPY
USDJPY has formed a symmetrical triangle in the daily charts and struggles to settle above the 111.00 level that remains in bulls’ focus. The pair was once again rejected from the above this handle and turned slightly negative on the day, suggesting the bullish momentum will be limited at the current levels. On the other hand, the prices have been holding above the key moving averages since late last week, which is a positive sign that could be followed by further upside attempts. In the four-hour charts, the pair continues to follow the bullish 20-SMA.
EURJPY
The cross has been in a bullish mode for a third day in a row. However, the pair still struggles to break above the 119.50 area that is standing on the way towards 120.00, where the 100- and 200-DMAs coincide, making a fairly strong resistance. The daily RSI is pointing slightly upwards, suggesting the positive momentum is limited. In the four-hour timeframes, EURGBP has been challenging the 200-SMA. If successful, the pair may extend gains, with the next target arriving at 119.70. On the downside, the immediate important support comes at 118.80.
USDCAD
The pair bounced from early-2016 highs seen last week and struggles to resume the upside momentum since then despite a bullish intraday bias on Monday. USDCAD has settled below 1.45 and still remains close to the long-term highs, with the daily RSI staying in the overbought territory, suggesting traders may push the dollar lower before the rally resumes. On the downside, the prices need to stay above 1.43 to maintain a relatively positive tone. Once below, the pair may retarget the levels below 1.42 in the days to come.
