Should the USD continue to lose ground, the euro may challenge the 1.0800 mark for the first time since April 25
The USD index is back under pressure, lacking demand amid widespread risk-on demand. The buck is holding around 101.50 during the early European hours, clinging to the lower end of the extended trading range. Should the US currency derail this support zone in the near term, the 101.00 figure will come back into the market focus next, followed by the 100.00 psychological level. The nearest upside target now arrives at 101.70, followed by the 102.00 figure. EURUSD trades marginally above the flat-line, refraining from challenging the 1.0800 level despite a weaker USD. The euro is flirting with the 1.0770 zone, holding onto recent gains due to a weaker dollar. The nearest support zone now arrives at 1.0725, followed by the 1.0700 level. Should the USD continue to lose ground, the pair may challenge the 1.0800 mark for the first time since April 25.
GBPUSD has been retaining bullish tone for the fourth session in a row on Monday. The pair is advancing north gradually, refraining from a more decisive rebound, however, as traders remain cautious despite dollar’s weakness. The cable advanced to 1.2660 earlier in the day before retreating marginally in recent trading. GBPUSD was last seen changing hands around 1.2640, up just 0.19% on the day. The key bullish target now arrives at 1.2700, followed by a more significant barrier in the 1.3000 zone last seen on April 22. On the shorter-term timeframes, the pound looks upbeat while holding above the key moving averages. The immediate support now arrives at 1.2600, followed by the 1.2570 zone while last week’s lows lie in the 1.2470 area. In a wider picture, the technical outlook for the pair has improved somehow over the last couple of weeks, but the broader bearish trend remains intact at this stage. Furthermore, GBPUSD remains well below the key weekly moving averages.
USDJPY continues to oscillate in a tight trading range these days. On Friday, the pair has settled around the flat-line, flirting with the 127.00 mark. Today, the dollar regained some strength, holding in the 127.30 area during the European hours. The 127.60 zone, followed by the 128.00 level represent the immediate significant upside target for USD bulls. On the hourly timeframes, the buck is holding back above the 20-SMA, with the RSI struggles for direction in neutral territory, painting a mixed technical picture. The near-term outlook remains downbeat as long as the pair stays below the 20-DMA, today at 128.70. Should the prices regain this moving average, the 130.00 mark will come back into the market focus. On the downside, failure to hold above the ascending 20-week SMA (today at 121.20) would imply that USDJPY has probably peaked already.
Gold prices bounced off the 20-DMA to turn positive on the day after last week’s modest gains. The precious metal is oscillating around $1,860 while holding off last week’s highs registered in the $1,870 zone. On the downside, the directionless 200-DMA, currently at $1,840, remains in the market focus. This moving average has been acting as support zone since a strong bounce on May 19, so the near-term outlook for the bullion remains upbeat wile above the 200-DMA. On the hourly charts, however, the upside momentum is waning already, with the RSI turning lower in neutral territory, suggesting the yellow metal could stay below the 100-DMA, currently at $1,887, while the key upside target still arrives at the $1,900 figure last seen at the start of the month.