The rallying USD sent the euro to the lowest levels since the early days of the pandemic in March 2020
The USD index regained the upside momentum to register fresh long-term highs around 101.96 earlier in the day before retreating marginally in recent trading. As the index climbed to the 102.00 zone, the prices could derail this immediate barrier after some short-lived hesitation. Later in the day, fresh economic data out of the US (durable goods orders, new home sales and CB consumer confidence) could add to dollar’s bullishness, thus pressuring the common currency further. As such, USD bulls sent the euro to the lowest levels since the early days of the pandemic in March 2020. EURUSD derailed the 1.0700 mark to extend losses to 1.0670 during early deals in Europe. Since then, the pair bounced partially to settle just below the 1.0700 mark while staying vulnerable to deeper losses while below the descending 20-DMA, currently at 1.0870. Should the European currency fail to hold above the mentioned lows, the 2020 low of 1.0635 will come into the market focus.
GBPUSD extended the plunge on Monday to derail the 1.2700 mark for the first time since mid-2020 while staying on the defensive today. The pair refreshed the long-term low of 1.2697 before bouncing marginally, but it looks like the cable would see even deeper losses before a reversal takes place. On the downside, the next immediate support arrives around 1.2675, followed by 1.2580. On the four-hour charts, the RSI is pointing lower in the oversold territory, suggesting the pressure would persist in the near term. Adding to bearishness surrounding the cable, the pair stays well below the key moving averages. The pair was last seen changing hands around 1.2723, down 0.13% on the day. A daily close above 1.2770 would somehow ease the selling pressure but the overall technical picture stays negative while below at least the 1.3000 mark where a slightly descending 20-DMA arrives.
USDJPY struggles to regain the upside bias these days, albeit stays afloat, holding above the 127.00 figure so far. The pair encountered resistance at year highs seen around 129.40 last week and has been correcting slightly lower since then. After failure to hold above 128.00, the pair has settled 127.80 during the European trading hours, shedding less than 0.25% on the day. On the hourly charts, the technical picture looks neutral for the time being, suggesting USDJPY could struggle to get back above 129.00 in the near term. However, it looks like the greenback will stay afloat anyway, especially as the pair refrains from a pronounced retreat despite the extremely overbought conditions. On the downside, the immediate support now arrives at 127.35, followed by the 127.00 zone and the 126.40 figure.
Gold prices struggle to attract demand after finishing below the $1,900 mark on Monday. The XAUUSD bounced marginally but continues to lack the upside impetus to see more robust gains, holding well below the 20-DMA after the recent plunge. On the downside, failure to hold above the $1,890 local support would add to bearishness surrounding the yellow metal in the near term while decisive recovery above $1,915 may pave the way towards the mentioned moving average, today at $1,940. In a wider picture, the bullion could face more intense selling pressure should the prices fail to hold above the ascending 20-week SMA, today at $1,880, followed by the 100-SMA (at $,1837). On the upside, the key intermediate resistance arrives around $1,960. As long as the prices stay below this zone, bearish risks continue to persist ahead of the Federal Reserve meeting due next week.