The yellow metal could stay under pressure in the near term despite dollar weakness
The dollar index gives away Friday’s gains as risk sentiment has improved at the start of the week. The index was last seen challenging the key support around 92.00 despite a mild advance in yields of the key US 10-year note. Against this backdrop, EURUSD erased Friday’s losses to settle marginally below the 1.1900 figure that represents the immediate resistance at this stage. The daily RSI is pointing slightly higher in the neutral territory, suggesting the pair could at least stay afloat in the near term. However, the common currency may need an extra catalyst in order to regain the 1.1900 figure on a daily closing basis as the pair lacks upside momentum despite the safe-haven demand for the greenback has abated since Friday.
The cable turned marginally positive on Monday following a rejection from the 1.3980 region late last week. The pair has been lacking upside momentum since then and was last seen flirting with the 100-DMA that arrives just above the 1.3900 figure. If the pair manages to set a daily close above this level, the technical picture would improve somehow. However, as the daily RSI is nearly flat and the prices struggle to regain the mentioned moving average, it looks like the pound could come under renewed selling pressure in the near term. In a wider perspective, the pair continues to cling to the 20-week SMA while the RSI looks directionless, pointing to a neutral technical picture in the medium term.
Gold prices have been losing ground for the second day in a row on Monday after failed attempts to break above the $1,830 region. Still, the bullion is holding above the $1,800 figure where the 100-DMA lies. As long as the precious metal is holding above this moving average, downside risks are limited. On the four-hour charts, the prices have settled below the key moving averages while the RSI is pointing slightly lower, suggesting the yellow metal could stay under pressure in the near term despite dollar weakness. If the bullion fails to hold above $1,800 on a daily closing basis, the $1,790 region will come back into market focus. On the upside, the $1,820 area (where the 200-DMA arrives) represents the immediate resistance.
USDCHF has been staying under pressure for the sixth day in a row on Monday. The pair has settled below the 200-DMA while holding just above Friday’s lows seen at 0.9040. As of writing, the dollar was trading at 0.9050. On the hourly charts, the technical picture looks neutral as the prices have been following the 20-SMA that caps bullish attempts at this stage. Now, the pair needs to overcome the 200-DMA, today at 0.9073, in order to regain the 0.9100 figure which represents the immediate resistance now. In a wider picture, the dollar needs to get back above the 20-week SMA (0.9135) so that the technical picture to improve somehow. On the downside, the pair needs to hold above the mentioned lows in order to avoid deeper losses in the coming days.