Euro refrains from challenging the 1.1000 figure that represents the immediate target
The safe-haven dollar came under some local pressure on Monday as investor sentiment looks mixed amid the ongoing talks between Russia and Ukraine. Earlier in the day, the USD index peaked at 99.30 before retreating below the 99.00 figure. Despite the correction, the dollar bulls continue to target the 100.00 psychological level as risk aversion continues to dominate global financial markets, adding to the greenback’s appeal. EURUSD bounced from the 1.0900 support zone that capped the decline ahead of the weekend. During the local recovery, the pair extended gains to 1.0980, refraining from challenging the 1.1000 figure that represents the immediate target for the euro bulls. On the four-hour charts, the common currency is facing resistance in the form of the 20-SMA that arrives lust below 1.1000. It looks like the euro may need an extra impetus to overcome this hurdle in the short term, with the overall technical picture looking bearish at this stage.
Earlier in the day, GBPUSD extended losses to November 2020 lows around the 1.3000 psychological level that capped the sell-off and triggered a mild bounce during the European hours. The pair has settled just below the 1.3050 zone since then, struggling to see a more decisive recovery as the greenback remains steady despite the retreat from peaks. The pound now needs to regain the 1.3080 immediate upside target in order to avoid deeper losses in the coming days. However, it looks like the cable will keep bleeding as long as risk aversion dominates global financial markets, adding to the dollar’s appeal. Adding to a downbeat tone surrounding the pound, the pair stays well below the key moving averages while the daily RSI struggles to get back above the 30 figure and recovery from the oversold territory. Should the 1.3000 level fail to withstand the pressure, the prices will target the 1.2850 zone.
USDJPY has been rallying for the sixth session in a row on Monday. The pair extended the ascent towards fresh early-2017 highs just below the 118.00 figure that represents the immediate bullish target for the greenback. It looks like the prices could see more gains in the coming days despite the overbought conditions as the Japanese yen keeps bleeding amid a dovish stance by the Bank of Japan while the Fed stands ready to start hiking interest rates during the upcoming policy meeting due on Wednesday. On the downside, the immediate support now arrives at 117.00. Should the 118.00 level give up in the near term, the dollar will target the 2017 high of 118.60. On the hourly timeframes, the pair has settled well above the key SMAs while the RSI keeps pointing north despite the overbought conditions, suggesting the path of least resistance remains to the downside for the time being.
XAUUSD keeps trending lower as the downside correction from fresh long-term peaks around $2,070 continues. On Monday, the bullion extended the retreat to the $1,959 figure and was last seen clinging to the lower end of the range. Should the selling pressure intensify anytime soon, the prices may threaten the ascending 20-DMA, currently at $1,934. As long as the yellow metal stays above this zone, downside risks are limited. In a wider picture, gold prices stay bullish, with the overall uptrend intact. Furthermore, the yellow metal could attract renewed demand and regain the $2,000 psychological level should risk aversion intensify this week. On the negative side, XAUUSD could see some pressure from a stronger dollar as the Fed is about to start raising interest rates during the upcoming meeting. In the immediate term, the bullion needs to hold above the mentioned moving average in order to avoid a deeper retreat.