Gold prices look unlikely to overcome the $1,840 region any time soon, with downside risks persisting in the neat term
The US dollar keeps struggling around the 104.00 figure, lacking demand amid the prevailing risk-on tone in the markets. The greenback, however, refrains from a more pronounced bearish correction at this stage as dip buyers keep the safe-haven currency. EURUSD briefly exceeded the 1.0600 figure on Monday, retaining a modest bullish bias today. The euro looks set to extend its recovery in the near term, especially as the pair has settled above the 20-DMA, staying bid on short-term charts. Should the buck stay on the defensive in the near term, the common currency may overcome yesterday’s highs around 1.0615, followed by the 1.0645 zone. The pair has settled marginally below the 1.0600 mark that represents the immediate target for euro bulls at this stage. A daily close above this level would add to a more upbeat technical picture in the near term. However, the overall trend remains bearish, with USD outperforming its rivals due to the Fed’s aggressive tightening steps.
GBPUSD briefly rallied to ten-day highs around 1.2330 early on Monday before trimming intraday gains as traders were spooked by the descending 20-DMA that arrives at 1.2337. The pair was last seen changing hands just below the 1.2300 mark, adding 0.13% on the day. As the cable failed to hold above the 1.2300 level that has been capping gains since last week, any significant ascent looks unlikely at this stage, with long-term lows seen below 1.2000 earlier this month staying in the market focus. On the downside, the nearest support now lies at 1.2240, followed by the 1.2200 figure. In a wider picture, the pound would stay on the defensive while below the 1.3000 psychological level last seen more than two months ago. The immediate upside target now arrives at 1.2330, followed by the mentioned moving average.
USDJPY has been retaining bullish tone for the third day in a row on Tuesday. The pair regained the 135.00 mark, now struggling to overcome the 135.70 immediate barrier on the way to 24-year highs seen last week around 136.70. As such, the overall technical picture remains bullish, with the uptrend intact, especially as the dollar holds above the ascending 20-DMA last seen nearly a month ago. Furthermore, the pair could hit 140.00 in the coming weeks should the US Treasury yields continue to move north in the short term. But first, the greenback will have to overcome the 137.00 hurdle that represents the immediate significant barrier for USD bulls. In the immediate term, as the USD lacks demand, USDJPY could spend some time in consolidation before resuming the ascent towards the mentioned targets.
Gold prices fell on Monday after another failed attempt to overcome the 20- and 200-DMAs. The precious metal, however, regained bullish momentum today, challenging the $1,830 zone during the European trading hours. On the downside, the $1,820 zone represents the immediate support while the $1,800 mark remains the key near-term target for bears. On the four-hour timeframes, the XAUUSD pair was last seen flirting with a slightly descending 20-SMA while the RSI was pointing marginally higher in neutral territory, painting a mixed technical picture at this stage. Should the $1,830 zone give up, the bullion will target the $1,840 next local barrier, but gold prices look unlikely to overcome this region any time soon, with downside risks persisting despite a bullish bias on the intraday charts, especially as gold struggles to capitalize on its safe-haven status as of late. In the longer term, XAUUSD could regain the $2,000 mark, but for the time being, the path of least resistance remains to the downside.