EURUSD climbed to the 50-DMA earlier in the day and turned negative after a rejection from 11-day highs around 1.0970. On the downside, the 1.09 level acted as the intraday support that helped the euro to trim losses partially. In a wider picture, the pair remains stuck in the technically defined range and it looks like the current consolidation will continue for some time. The daily RSI still looks neutral, also pointing to range-trading in the near term. The common currency needs to stay above the 1.09 handle in order to avoid deeper losses. Once below this level, the prices extend losses to the 1.0850 area.
GBPUSD rallied to one-month highs around 1.2535 at the start of the day but trimmed gains amid some profit-taking and got back below the 1.25 figure afterward. The fact that the pair struggles to see sustained gains shows that the sterling still lacks the upside momentum. Also, there are still a few resistance levels in the form of simple moving averages in the daily timeframes, also suggesting the way north could be difficult. As such, the 1.25 level acts as the immediate resistance again while on the downside, the intermediate support now arrives at 1.2380.
USDJPY is on the defensive on Monday after a flat week. The pair struggled to overcome the resistance around 108.50 and dipped below 108.00 for the first time in over a week. As a result of the recent retreat, the daily RSI turned slightly bearish but the slope is not strong enough to call a more aggressive decline in the short term. On the other hand, the technical picture has deteriorated after the dollar got back below the key moving averages that turned into resistance levels again. On the upside, the initial hurdle now arrives at 108.00 and then at 108.30, where the 200-DMA lies.
USDCHF turned slightly positive after two days of losses but the recovery momentum is still too modest to bet on more sustainable gains in the short term as the pair is yet to get back above the 50-DMA around 0.9670 not far from the current levels. Once above this level, the dollar will target the 0.97 level but lack of directional bias in the daily RSI and moving averages suggests the pair will hardly be able to stage a more aggressive ascent any time soon. On the downside, the nearest support comes at 0.9630.
USDCAD has been marginally positive on the day, having climbed to the 1.40 handle earlier that acted as the intraday resistance. Due to thin trading conditions on Monday, the pair struggles to stage a more decisive bounce after a decent decline witnessed last week. The daily RSI is flat while in the hourly charts, there is a slightly bearish bias, suggesting the dollar will hardly be able to challenge the above mentioned daily high in the near term and will stay in the familiar range instead. In case of the renewed downside pressure, the immediate meaningful support is expected at 1.3920.