Gold prices peaked at $1,823 for the first time since early-August but failed to preserve gains and retreated partially
The dollar came back under the selling pressure on Tuesday as positive risk sentiment prevails in the global financial markets. As such, EURUSD extended gains to fresh more than three-week highs around 1.1830. However, the pair is yet to confirm a break above the 1.1800 figure on a daily closing basis. If the 1.1830 area gives up anytime soon, the 1.1850 intermediate resistance will come into market focus for the first time since August 5th. On the positive side, the daily RSI is pointing north in the neutral territory while the pair has settled above a slightly ascending 20-SMA since late-last week, suggesting the path of least resistance for the time being is to the downside. On the hourly timeframes, the RSI is nearing the overbought levels, however, which implies that the euro could struggle around the 1.1830 mentioned highs in the immediate term.
The cable turned marginally positive on Tuesday. The pair climbed to the 200-DMA around 1.3800 earlier in the day before retreating below the 20-DMA during the European hours. Despite the pound regained a bullish bias, the pair lacks upside momentum to see a more sustained ascent in the short term despite dollar weakness. It looks like GBPUSD would need an extra catalyst to overcome the 1.3800 barrier in the short term. Furthermore, the pair could erase modest intraday gains later today if the greenback sees a recovery across the board. In this scenario, the cable would get back under the 1.3750 region. According to the daily RSI, the immediate technical picture looks neutral at the moment as the indicator is directionless around the 49 mark.
USDJPY has been flirting with the 20-DMA since the start of the week. The pair firmed marginally on Monday but faced a barrier around 110.00, struggling to preserve upside momentum today. The dollar was last seen changing hands around 109.88, down 0.02% for the day. On the hourly charts, the prices are stuck between the key moving averages, struggling for direction. USDJPY needs to see a decisive break above the 110.00 handle in order to retarget last week’s highs in the 110.25 area. On the downside, the key immediate support arrives at 109.65 where the 100-DMA lies. As long as the greenback stays above this figure, bearish risks are limited at this stage.
Gold prices peaked at $1,823 for the first time since early-August on Monday but failed to preserve gains and retreated by the closing bell. However, the precious metal managed to hold above the $1,800 psychological mark which continues to act as the key immediate support. On Tuesday, the bullion has settled just above the flat-line, flirting with the 100- and 200-DMAs. As long as the prices stay above $1,800, downside risks are limited for the time being. In a wider picture, the bullion needs to overcome the $1,830 resistance zone in order to see a more sustained ascent. However, should the dollar reverse recent losses, gold prices could finish the week below $1,800. If this figure turns into support anytime soon, the market focus would shift back to the 20-DMA around $1,783.