The yellow metal needs to regain last week’s highs around $1,874 in order to retarget the $1,900 mark last seen one month ago
The dollar keeps trading in a choppy fashion amid the rising perception that US inflation might have peaked in April. The prevailing risk demand in the global financial markets caps the USD’s upside potential as well, thus pushing its counterparts higher. As such, the euro turned back positive on Monday as the dollar struggled to attract demand at the start of the week. EURUSD managed to hold above the 1.0700 figure during the latest sell-off and was last seen flirting with the 1.0750 zone, targeting the 1.0800 mark. On the upside, the immediate resistance for EURUSD arrives at 1.0875, followed by the mentioned 1.0800 figure. Should USD demand reemerge, the pair may threaten the 1.0700 mark while the key short-term support arrives at 1.0615 where the 20-DMA lies. It looks like the upside momentum for the common currency could be limited at this stage as traders stay cautious and could prefer a wait-and-see mode ahead of the US inflation report due on Friday.
GBPUSD continues to derive support from the 20-DMA that has been capping losses since May 20. The pair advanced to the 1.2560 zone in recent trading, refraining from challenging the 1.2600 mark despite dollar weakness. On the hourly timeframes, the cable encountered a barrier represented by the 200-SMA, and it looks like the prices will stay capped by this moving average in the immediate term. On the downside, the nearest support now arrives at 1.2500, followed by the 1.2475 region where the mentioned 20-DMA lies. In a wider picture, the pound holds just slightly above long-term lows seen last month around 1.2155. In other words, the broader bearish trend remains intact while below the 100-week SMA, today at 1.3430. In the near term, GBPUSD needs to hold above the 1.2500 level in order to stay afloat.
USDJPY climbed back to the area of long-term peaks around the 131.00 figure after a solid bounce from the 126.35 zone last month. The pair has retreated marginally from highs in recent trading while still staying afloat on Monday. The dollar was last seen changing hands around 130.70, down just 0.1% on the day. On the four-hour charts, the technical picture looks neutral-to-positive, with the prices holding well above the key moving averages while the RSI is directionless in overbought territory. It looks like the pair could see another retreat before regaining the 131.00 barrier eventually, with the overall outlook for the US currency looking upbeat in a wider picture. On the downside, the nearest support now arrives at 130.40, followed by 130.00 and the 20-DMA, currently at 128.70.
Gold prices are holding around the $1,850 zone after a plunge witnessed on Friday. During the latest sell-off, the XAUUSD pair derived support from the 20- and 200-DMAs that helped prevent deeper losses ahead of the weekend. Now, the yellow metal needs to regain last week’s highs around $1,874 in order to retarget the $1,900 mark last seen one month ago. The bullion was last seen changing hands around $1,852, up 0.26% on the day. On the four-hour charts, XAUUSD is holding below the ascending 20-SMA while the RSI looks directionless in neutral territory, suggesting the upside potential for the pair remains limited at this stage, with bearish risks persisting. Should the selling pressure reemerge anytime soon, the yellow metal could derail the mentioned simple daily moving averages that converge around $1,842. In other words, the downside potential remains limited while above this zone.
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