The USD index derived support from the 105.00 figure to bounce back into positive territory
EURUSD
The dollar index dropped to nearly one-month lows around 105.00 early on Tuesday before bouncing back into positive territory as risk aversion reemerged amid rising tensions surrounding Taiwan. The greenback recovered to the 105.00 zone, thus pushing the shared currency into bearish zone on the daily charts from local peaks seen just below 1.0300. Should investor sentiment continue to deteriorate in the near term, the euro may see deeper losses before resuming the ascent. As of writing, EURUSD was changing hands around 1.0240, up 0.19% on the day. The immediate support around 1.0200 remains intact, followed by the 20-DMA, today at 1.0160. On the weekly timeframes, the common currency retains a bullish bias for the third week in a row, but still stays within a broader downtrend that remains intact, with bearish risks persisting while below 1.1500 where the 100-DMA lies.
GBPUSD
The cable peaked at more than one-month highs just below the 1.2300 mark at the start of the week to finish around 1.2250. On Tuesday, the pair fell towards the 1.2200 zone as the US dollar attracted some demand at lower levels. As a result, the daily RSI reversed lower in neutral territory, but the downside potential looks limited so far, especially as the prices stay well above the ascending 20-DMA, today at 1.2015. On the upside, a decisive break above 1.2300 would pave the way towards the 1.2415 intermediate barrier on the way towards the descending 100-DMA, currently at 1.2500. In a wider picture, however, the pound is yet to break the downtrend that has been dominating since mid-2021. On the weekly timeframes, the technical picture remains bearish, with the prices holding below the key SMAs while the RSI struggles for direction.
USDJPY
The yen has been rallying aggressively for the fifth session in a row on Tuesday. USDJPY peaked at 24-year highs above 109.00 in mid-June and has been correcting south since then. A failure to hold above the 20-DMA triggered a massive unwind of the USD gains, with the pair approaching the 130.00 figure for the first time in two months. USDJPY saw fresh local lows in the 130.40 zone, followed by a slightly ascending 100-DMA, currently around 130.23. As the buck bounced across the board, the pair trimmed early losses to settle just below the 131.00 mark. Should the dollar fail to hold above the mentioned moving average, the selling pressure may intensify dramatically in the days to come. On the hourly timeframes, the technical picture looks mixed as the prices stay below the descending 20-SMA while the RSI recovers back into neutral territory, pointing north.
XAUUSD
Gold prices have been rising for the fifth day in a row due to a weaker USD. The dollar-denominated commodity exceeded the descending 20-DMA last week and keeps targeting the $1,800 mark last seen nearly one month ago. The precious metal was last seen trading around $1,773, up just 0.1% on the day as the greenback trimmed some losses in recent trading. The overall technical picture looks solid, but the recovery potential remains limited at this stage. Should the selling pressure reemerge, the bullion may retarget the mentioned moving average. Adding to skepticism, the XAUUSD pair holds below the 20-week SMA, today at $1,811. The metal needs to see a decisive break above this hurdle in order to shrug off the pressure that continues to dominate the market since a plunge from all-time highs seen above $2,000 earlier this year.
