The dollar managed to shrug off the weak figures to turn positive on Monday
the greenback managed to shrug off the weak figures to turn positive on Monday. Still, the recovery momentum looks too modest and fragile to bet on sustained gains in the short term. EURUSD briefly exceeded the 1.1900 figure ahead of the weekend but failed to preserve gains ad retreated partially. Today, the pair slipped to the 1.1855 area which represents the immediate support. If the prices fail to hold above this zone in the near term, the 1.1800 figure will come back into market focus. The daily RSI has reversed lower in the neutral territory while the prices stay shy off the 1.1900 level, suggesting the common currency will likely stay on the defensive in the near term.
The cable peaked at 1.3890 on Friday before turning negative today amid a widespread recovery in dollar demand. The pair slipped to the 1.3830 area that caps losses during the European hours. On the positive side, the pound stays above the key moving averages, suggesting the downside pressure would be limited in the short term despite the daily RSI turned slightly bearish. In a wider picture, GBPUSD still struggles to get back above the 20-week SMA, which implies that the pair lacks upside momentum despite the prevailing weakness surrounding the US dollar. The immediate support is now expected at 1.3812 where the 200-DMA arrives.
USDJPY bounced from the 100-DMA on Monday to erase most за Friday’s losses. The pair advanced to 109.95 earlier in the day before retreating back to the 20-DMA in recent trading. If this moving average (today at 109.86) gives up anytime soon, the mentioned 100-DMA will come back into market focus. On the upside, the 110.00 figure represents the key target for dollar bulls. As long as the prices stay below this hurdle, downside risks continue to persist. On the four-hour charts, the pair struggles to get back above the 20-SMA, adding to a still downbeat technical picture despite the recent bounce from local lows.
Gold prices jumped to mid-July highs around $1,833 on Friday to settle above the key moving averages. Today, the precious metal has settled around $1,825, struggling to challenge the mentioned highs as the dollar proceeded to recovery at the beginning of the week. On the positive side, the bullion is holding above the $1,800 handle and could see fresh gains if the greenback fails to see a more sustained bullish correction in the short term. If the yellow metal fails to hold above the $1,820 zone in the near term, the 100-DMA, today at $1,815, will come back into the market focus. On the four-hour charts, the technical picture looks mixed as the prices are holding above the 20-SMA while the RSI is pointing south in the neutral territory.
USDCHF encountered support just above the 0.9100 figure on Friday to stage a solid bounce at the beginning of the week. The pair climbed back to the 20-DMA, today at 0.9157. The dollar advanced to intraday highs around 0.9164 and was last seen clinging to the upper end of the trading range as the greenback turned positive across the market. Now, USDCHF needs to confirm a break above the mentioned moving average on a daily closing basis in order to extend the ascent in the coming days. On the hourly timeframes, the greenback has settled above the key moving averages while the RSI is pointing north, suggesting the pair could at least stay elevated in the immediate term. The nearest resistance now arrives at 0.9170, followed by the 0.9200 figure last seen on August 18th.