In a wider picture, the bullish potential surrounding the common currency looks limited
EURUSD
On Monday, the USD index encountered a barrier around May 2020 highs seen earlier this month and retreated from 99.40. earlier in the day, the greenback regained the upside momentum to get back above 99.00 during the European hours. In recent trading, however, the prices came back under some selling pressure. Against this backdrop, the euro extends its recovery from yesterday’s lows seen around 1.0945. The pair is now back above both the 1.1000 figure and the 20-DMA. EURUSD was last seen changing hands around 1.1025, up 0.45% on the day. On the four-hour timeframes, the technical picture has improved as well, with the RSI pointing north in neutral territory while the prices have exceeded the key moving averages. In a wider picture, the bullish potential surrounding the common currency looks limited, however, as the buck is likely to stay within a strong bullish trend amid the persisting geopolitical tensions globally.
GBPUSD
GBPUSD has been losing ground for the fifth session in a row on Tuesday, staying on the defensive despite the dollar’s retreat. The pair dipped to fresh mid-March lows around 1.3050 before bouncing slightly in recent trading. The cable was last seen flirting with the flat-line, struggling to regain the 1.3100 figure that now represents the immediate resistance. Should the selling pressure intensify in the near term, GBPUSD may retarget November 2020 lows seen around 1.3000 nearly two weeks ago. This level is expected to trigger a bounce again. Otherwise, the pound will see deeper losses and could target 1.2800 eventually. On the hourly charts, however, the RSI has reversed north while the prices are challenging a slightly descending 20-SMA, suggesting the pair could refrain from a deeper retreat in the immediate term.
USDJPY
USDJPY peaked at fresh multi-year highs just above the 125.00 figure on Monday before retreating below 124.00 on a daily closing basis. Today, the dollar struggles to retarget the recent peaks while also staying afloat, refraining from a deeper downside correction despite the overbought conditions. should the downside pressure intensify, the pair could target 120.00 if the 123.00 zone gives up. On the upside, there is room for further upside in the short term. A decisive break above 125.00 would pave the way to 2015 peaks around 125.85, followed by ten-year highs. On the weekly timeframes, USDJPY has been rallying for the fourth week in a row, with the RSI pointing north in the overbought territory. The dollar was last seen changing hands around 123.65, down 0.22% on the day. The next support now arrives at 123.00, followed by the 122.40 region.
XAUUSD
Gold prices keep retreating from local peaks seen above $1,965 last week. The XAUUSD pair suffered solid losses on Monday, staying under pressure today as positive risk sentiment dominates global financial markets. The bullion extended losses to $1,910 and could threaten the $1,900 psychological level for the first time in nearly two weeks if the pressure continues to build in the near term. Should this mark trigger a bounce, the yellow metal may eventually regain the 20-DMA, today at $1,953. In a wider picture, the bullion struggles for direction while trading in a volatile manner these weeks. On the positive side, the prices still hold well above the key weekly moving averages that arrive in the $1,850-$1,830 zone. Earlier this month, the XAUUSD pair briefly jumped above the $2,000 psychological level and bas been correcting lower since then. Still, the broader bullish trend remains intact at this stage.
