EURUSD resumed the recline after failed recovery attempts earlier in the day. The pair struggled to extend early gains above 1.08 and dipped to the 1.0880 area. On the daily timeframes, the euro continues to form a symmetrical triangle, suggesting the bearish momentum will likely persist in the days to come. On the downside, the prices may target the 1.07 handle should the 1.0770 give up. However, the daily RSI has turned neutral, pointing to limited downside pressure. In the 4-hour charts, the technical picture looks bearish. Recovery above 1.08 could somehow improve the near-term dynamics in the pair.
GBPUSD was rejected from the levels just below 1.25 last week and continues to show a bearish bias since then. On Monday, the pair shows some signs of recovery but remains below the 1.23 handle amid broad-based dollar strength. Despite the bearish pressure has so far been capped by the 1.22 figure, the fact that the sterling remains well below the key moving averages both in the daily and weekly timeframes shows that the upside potential is limited. Once the pair confirms a steady break above 1.25, it may retarget the 50-DMA around 1.2680.
The pair has been climbing for the third day in a row on Monday, with the dollar testing the 100-DMA around the 109.00 level that is now in traders’ focus. A daily close above this handle will act as a confirmation of the latest breakout while above 109.40, the prices will first target the 109.60 area. The daily RSI is pointing slightly higher, suggesting the upside momentum persists for now. Meanwhile, in the weekly timeframes, the dollar is yet to regain the key moving averages to get rid of downside risks.
The cross briefly spiked to 118.30 early on Monday but has retreated partially since then. The prices have settled around 117.60, and the technical picture turned more neutral in the daily charts as a result. Despite the recent bounce, the euro remains on the defensive and far below the levels seen during the last week of March, when the prices exceeded the 121.00 handle and turned into a corrective mode since then. During the recent sell-off, EURJPY slipped below the key moving averages that are now acting as resistance levels on the way north. In the short term, the pair will likely remain below the 118.00 figure as the bullish potential still looks limited.
USDCHF has been on the rise for the sixth consecutive day on Monday. Now, the pair is stuck between the 50- and 200-DMAs, threatening the latter. Once above this moving average that acts as the immediate resistance around 0.98, the dollar will target a stiff resistance of 0.9850. To break this level, the pair may need the additional bullish impetus, as this level had capped the upside movement in the past. In the daily timeframes, the RSI is pointing slightly upwards, suggesting the pair may at least stay afloat in the near term. On the downside, the immediate support arrives at 0.9750.