The euro keeps clinging to the 1.1300 figure where the 20-DMA arrives
Following a quiet start to the day and the final week of this year, dollar demand has picked up somehow during the European hours as risk sentiment deteriorated amid the resurgent concerns surrounding the Omicron coronavirus variant. As such, the safe-haven USD index surged to the 96.15 area, up 0.15% on the day. EURUSD keeps facing resistance around 1.1340. The pair dipped to the flat-line just above 1.1300 in recent trading before bouncing towards 1.1320. The common currency derives support from the 20-DMA, currently at 1.1300. Should the prices fail to hold above this figure in the short term, the pair may challenge the 1.1290 region amid a stronger dollar. However, it looks like EURUSD will continue to tread water in a tight range so far.
The pound keeps oscillating around the 1.3400 figure, lacking the upside momentum to make a decisive break above this immediate barrier. The pair climbed to intraday highs in the 1.3420 area that capped the bullish attempts late last week. On the downside, the immediate support arrives at 1.3340, followed by 1.3300 figure and the 20-DMA, currently at 1.3277. Now, the 1.3400 figure remains in the market focus and it looks like the prices will continue to consolidate around this level in thin trading conditions as traders leave the market for holidays. In the immediate term, fresh bullish attempts around the mentioned local highs could bring another rejection to 1.3400 or even lower levels.
USDJPY rallied to one-month highs around 114.70 and was last seen clinging to the upper end of the extended intraday range. Should this barrier give up anytime soon, the 115.00 figure will come into the market focus. However, the pair could struggle to extend the ascent due to low trading volumes during a pre-holiday week. On the downside, the nearest support arrives at 114.30, followed by the 114.00 figure and the 20-DMA, currently at 113.65. it looks like the prices would hold above this moving average this week, with upside risks dominating for the time being. On the hourly charts, however, there are some bearish signals as the RSI is reversing lower while the dollar was last seen slipping from the mentioned peaks that stand on the way towards the 115.00 barrier, followed by multi-year highs around 115.50.
Gold prices peaked at $1,811 earlier on Monday but failed to preserve upside momentum and retreated to the flat-line during the European hours as dollar bulls reentered the game. Still, as long as the precious metal holds above the $1,800 psychological level, downside risks stay limited while the overall technical picture looks neutral. The XAUUSD pair needs to overcome December highs around $1,815 to see more solid gains in the coming weeks. However, it looks like the bullion would stay below this hurdle, strengthened by the ascending 20-week SMA. On the downside, a break below $1,800 would pave the way towards the 200-DMA, currently at $1,796. Should this moving average give up, the short-term technical outlook would deteriorate.
USDCHF bounced from the 200-DMA and climbed back to the 0.9200 level before retreating slightly in recent trading. It looks like the pair would lack the bullish momentum to overcome this barrier on a daily closing basis. Furthermore, there is a strong barrier around 0.9210 where the 20- and 100-DMAs converge. To finish the month in the green, the dollar needs just to settle at 0.9200. On the four-hour charts, the prices are edging lower, with the RSI reversing south, suggesting the pair could reenter the negative territory should the 200-DMA, currently at 0.9175, give up anytime soon. In other words, the path of least resistance is to the downside now despite the bullish bias persisting on the daily timeframes for the time being.
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