The XAUUSD pair extended gains to 1.5-week highs around $1,815 before retreating marginally
The dollar looks mixed so far on the day, with upside risks prevailing as US yields look to extend the recent uptick. EURUSD turned negative after six days of gains, holding just above the 1.1400 figure during the European hours. It looks like the pair will continue to retreat from nearly three-month highs seen just below the 1.1500 level last Friday, especially as the US inflation report looms. The common currency was last seen changing hands around 1.1425, down 0.2% on the day. As long as the 1.1400 figure act as support, downside risks are limited in the near term. On the four-hour charts, the pair stays above the key moving averages while the RSI has already corrected lower from the overbought territory and turned neutral, suggesting the immediate technical picture looks neutral at this point.
The cable has been retreating since Friday, turning negative after a failed attempt to confirm a break above the 1.3600 figure. On Monday, the pair extended losses to 1.3510, refraining from challenging the 1.3500 support zone during the European hours, which implies that the upside potential surrounding the dollar is limited at this point. Should this level give up anytime soon, the prices would target the 1.3460 region. Of note, the 1.3500 figure is strengthened by the 100-DMA, suggesting it could withstand the pressure in the near term. In this scenario, the pound can erase some losses by the end of the day. On the hourly timeframes, GBPUSD has settled below the 20-SMA but the downside potential still looks limited. In a wider picture, the pair looks neutral following last week’s rally amid dollar weakness across the market.
USDJPY failed to extend the ascent on Monday as the 115.40 zone triggered some profit-taking ahead of the weekend. As a result, the greenback retreated briefly back below the 115.00 figure but managed to regain it on a daily and weekly closing basis. Today, this level capped bearish attempts again, suggesting the pair could resume the ascent following a short-lived retreat. On the hourly timeframes, the technical outlook remains upbeat as long as the prices stay above the key moving averages. On the upside, a decisive break above 115.40 would pave the way towards the 115.70 region that capped the bullish potential late last month. In the immediate term, the dollar could struggle to regain the upside bias as the daily RSI is pointing lower in the neutral territory.
Gold prices keep trending higher since Friday while struggling to stage a more decisive ascent as dollar bulls are reentering the game. The XAUUSD pair extended gains to 1.5-week highs around $1,815 before retreating marginally in recent trading. Despite the prevailing bullish bias, the yellow metal refrains from challenging the directionless 20-DMA, currently at $1,817. Should the bullion overcome this barrier in the near term, the short-term technical outlook will improve further. On the downside, the $1,800 figure remains in the market focus while the intermediate support arrives at $1,806 where the 200-DMA lies. On the four-hour charts, the overall picture looks neutral, suggesting XAUUSD could spend some time in consolidation mode before deciding on the further direction.
The BTCUSD has been retaining a bullish bias since last Friday. The coin has finally broken out of the tight range and extended gains to 2.5-week highs around $43,000 before retreating marginally in recent trading. Now that the prices are back above the $40,000 psychological level, the short-term technical picture has improved. Furthermore, the fact that the largest cryptocurrency by market capitalization has settled above the 20-DMA, adding to a more upbeat outlook. However, it is possible that the digital coin could see a local bearish correction before breaking above the $43,000 immediate hurdle on a daily closing basis. In a wider picture, bitcoin keeps rebounding following two weeks of gains.