The greenback stays afloat despite some retreat from peaks
The USD index is off recent peaks but stays buoyed at the start of the week due to its safe-haven status. Early on Monday, the common currency came back under pressure to attract renewed demand that took the prices back to the 1.1200 figure during the European hours. In the near term, the euro will hardly be able to regain 1.1200 and retarget the 20-DMA, currently at 1.1340. Instead, the pair may come back under pressure to challenge fresh long-term lows around 1.1000 this week if risk aversion continues to push high-yielding assets lower. At this point, the immediate support is expected in the 1.1140-1.1120 region, followed by the 1.1100 mentioned zone. On the upside, EURUSD needs to overcome 1.1200 on a daily closing basis in order to retarget the mentioned moving average. However, downside risks continue to persist for the time being.
GBPUSD opened with a solid bearish gap on Monday. The pair bounced from the 1.3300 figure to trim early losses but failed to regain the 1.3400 zone and was last seen trading around 1.3385. Despite the prices coming off 2022 lows seen around 1.3270 last week, it looks like the pound could come under renewed pressure to register fresh late-2021 lows in the coming days should risk aversion persist amid geopolitical developments surrounding the Russia-Ukraine conflict. In the immediate term, GBPUSD needs to hold above the 1.3350 zone in order to stay afloat and regain the 1.3400 immediate bullish target eventually. In a wider picture, the pair is now flirting with a slightly ascending 100-week SMA. Should the cable lack the upside momentum to overcome this hurdle anytime soon, the mentioned lows below 1.3300 will come back into the market focus.
USDJPY finished the week with gains and retains a bullish tone on Monday. The pair was last seen trading slightly off the 115.75 region that capped gains last week. On the downside, the immediate support is now represented by the 20-DMA, currently at 115.20. As long as the prices stay above this moving average, upside risks persist in the near term. On the other hand, it looks like the dollar may lack the bullish momentum to challenge the mentioned highs and regain the 116.00 level. On the hourly timeframes, the pair is flirting with the 20-SMA while the RSI is pointing slightly higher in the neutral territory, painting a mixed technical picture. In a wider picture, the bullish momentum remains intact as long as the pair stays above the ascending 100-DMA, currently at 114.40. USDJPY has been holding above this moving average for five months already.
Gold prices came off early peaks around $1,927 and were seen trying to hold above the $1,900 handle during the European hours. In part, risk aversion has waned due to upcoming negotiations between Russia and Ukraine. The Russian negotiator said earlier in the day Moscow was interested to reach an agreement with Ukraine as soon as possible. Meanwhile, Ukraine said the main goal of talks was the immediate ceasefire and withdrawal of Russian troops. The XAUUSD pair was last seen changing hands around $1,903, off intraday highs seen in the $1,927 area. On the four-hour charts, the prices have settled below the 20-SMA while the RSI is pointing slightly higher in neutral territory, suggesting the immediate technical picture is neutral for the time being. Should the bullion hold above $1,900 and extend the bounce in the near term, buyers may retarget the mentioned highs while the intermediate barrier now arrives around $1,915.