The greenback remains resilient, targeting fresh two-year peaks beyond the 100.00 mark
The USD index slipped back to Friday’s closing levels after another rejection from the 100.00 figure earlier in the day. Still, the greenback keeps clinging to the upper end of the trading range amid the dominating risk aversion across the financial markets. The EURUSD pair bounced off more than one-month lows seen around 1.0836 on Friday to regain the 1.0900 mark at the start of the week. Now, the euro needs to hold above the 1.0900 figure in order to retarget the 1.1000 mark where the 20-DMA lies. Still, the short-term downside pressure persists as long as the common currency stays below the descending 100-DMA that arrives around 1.1220. The euro was last seen changing hands around 1.0926, up 0.49% on the day. The immediate technical picture has improved somehow as the RSI is pointing higher while the 1.0900 acts as support again.
GBPUSD dipped to fresh November 2020 lows below 1.3000 on Friday to find support around 1.2980. Today, the pair bounced back above 1.3000 to challenge the 1.3050 zone during the European hours as dollar bulls have retreated for the time being. On the hourly timeframes, the cable is now stuck between the key moving averages while the RSI looks directionless in neutral territory, suggesting the upside could be limited from here. The next bullish target arrives at 1.3080, followed by the 20-DMA, today at 1.3125. The pound needs to make a decisive break above this level in order to stage a more robust recovery from the mentioned long-term lows. However, it looks like the pair would come under renewed selling pressure after some recovery as the greenback remains resilient, targeting fresh two-year peaks beyond the 100.00 mark.
USDJPY jumped back above the 125.00 figure to notch fresh multi-year highs around 125.43. The pair was last seen clinging to the upper end of the extended trading range, suggesting the dollar could extend the ascent in the near term despite the overbought conditions. The next target for USD bulls arrives at 128.85 where 2015 peaks lie. Should the pair exceed this zone, the USD will register twenty-year highs. However, it looks like USDJPY could be rejected earlier as profit-taking may trigger a solid bearish correction from the current levels. On the downside, the immediate support now arrives at 125.00, followed by the 124.70 and the 124.00 mark. On the shorter-term timeframes, there are already signs of a waning upside momentum as the RSI is getting directionless in the overbought territory. On the weekly charts, the greenback keeps rallying for six bullish weeks in a row, with the prices holding well above the ascending 20-SMA.
Gold prices have been trending higher for the fourth session in a row on Monday. The XAUUSD pair is now back above the 20-DMA, challenging the $1,960 zone after a decisive break above $1,950. Should the immediate barrier give up, the yellow metal will retarget the $2,000 psychological level for the first time in a month. On the downside, the nearest support now arrives at $1,933, where the mentioned moving average lies, followed by the $1,915 region. On the four-hour charts, the technical picture looks upbeat but the upside momentum seems to be slowing down, as the RSI turned directionless around the 70 figure, suggesting XAUUSD could struggle around $1,960 and witness a local retreat in the near term before another leg higher takes place.