The fact that GBPUSD refrained from a deeper bearish correction suggests the pair is ready to extend the ascent
The USD index is back under pressure following the local recovery seen late last week. The index is barely holding above the 95.00 figure during the European hours, off two-month lows seen last week around 94.60 despite hawkish hints from the Fed and strong inflation data. Against this backdrop, EURUSD has settled above the 1.1400 figure while struggling to overcome the 1.1435 immediate barrier. On the downside, the bearish potential is limited as long as the prices stay above the ascending 20-DMA, currently at 1.1345. In the immediate term, the common currency needs to overcome the mentioned resistance in order to retarget two-month highs seen around 1.1480 last week, followed by the 1.1500 psychological level, strengthened by the descending 100-DMA.
The cable managed to hold above the 1.3650 zone on Friday despite the resurgent dollar demand. Today, the pair struggles for direction, oscillating around the flat-line around 1.3670. The fact that GBPUSD refrained from a deeper bearish correction suggests the pair is ready to extend the ascent following some consolidation in the short term. As such, the 1.3700 immediate barrier remains in the market focus. Should the prices get back above this level anytime soon, the pound may retest the 200-DMA, currently at 1.3730, followed by late-October highs seen around 1.3750 last week. On the downside, the immediate support arrives at 1.3650, followed by 1.3630. On the four-hour timeframes, the GBPUSD pair was last seen flirting with the 20-SMA.
USDJPY briefly dipped to 2022 lows in the 113.50 area last Friday to erase intraday losses eventually. As a result, the pair exceeded the 114.00 figure and extended gains to 114.55 during the European hours on Monday as risk sentiment has improved, pushing the safe-haven yen lower across the board. In the immediate term, the dollar needs to overcome the mentioned local highs in order to extend the ascent towards the ascending 20-DMA, currently at 114.90. As long as the prices stay below this hurdle, the downside risks persist in the near term. On the positive side, the daily RSI is pointing north in the neutral territory, suggesting there is room for further gains in the near term. On the hourly charts, USDJPY is stuck between the 20- and 100-SMAs for the time being.
Gold prices peaked around the $1,830 key local resistance on Friday to finish the week on a downbeat note. Still, the yellow metal saw weekly gains due to a rally witnessed on Tuesday. The bullion turned positive on Monday as the dollar is back under pressure at the start of the week. The XAUUSD pair extended recovery to the $1,823 area before retreating marginally from the intraday highs. It looks like the precious metal could lack the momentum to see more robust gains in the near term, especially as the $1.830 region continues to act as resistance. A decisive break above this figure would improve the near-term technical outlook. On the downside, the key support is represented by the $1,800 psychological level. On the positive side, the prices are holding above the key moving averages, capping the potential losses.
The BTCUSD pair continues to oscillate in a tightening trading range, struggling to regain the $43,000 level on Monday. The largest cryptocurrency by market capitalization has been staying below the descending 20-DMA (currently at $44,100) since late December, so the coin needs to make a decisive break above this hurdle to shift into a recovery mode. On the downside, the digital currency is holding well above last week’s lows around $39,600 while also deriving support from the $40,000 psychological level. In a wider picture, however, the outlook is worsening gradually, suggesting the bearish momentum could persist at least in the near term.