The shared currency remains cautious despite the renewed USD weakness
The dollar came under renewed selling pressure in early European deals after a failure to overcome the 106.60 zone earlier in the day. The USD index jumped following the payrolls data release on Friday. The greenback recovered from the 105.60-105.70 support zone to regain the 106.00 figure. However, the US currency is yet to preserve gains as the recovery momentum looks shaky at the start of the week. The buck has settled around 106.35 in recent trading, shedding nearly 0.3% on the day. On the upside, the key near-term target still arrives at 107.00. EURUSD regained the upside momentum on Monday, still struggling to regain the 1.0200 mark as the shared currency remains cautious despite the renewed USD weakness. On the hourly charts, the pair struggles around the key moving averages while the RSI is pointing south, suggesting the pair could stay below 1.0200 in the near term.
The cable finished below 1.2100 on Friday amid dollar’s strength across the market. GBPUSD regained the upside bias on Monday, struggling around 1.2100 during the early European hours. On the downside, the pound derives support from a slightly ascending 20-DMA, currently at 1.2040. The short-term downside potential remains limited while above this moving average. As such, the pound stays below local highs seen just below the 1.2300 handle that capped the recent recovery. Furthermore, GBPUSD is yet to break the downtrend that has been dominating since mid-2021. On the longer-term timeframes, the technical picture stays downbeat, with the prices holding below the key weekly SMAs while the RSI struggles for direction. On the four-hour charts, the prices are now capped by the descending 20-SMA while the RSI looks directionless, painting a mixed technical picture.
The pair rallied to 133.50 in the aftermath of a strong US jobs report on Friday. The dollar finished just below 135.00, preserving a mild bullish bias at the start of the week. USDJPY was last seen changing hands around 135.10, up less than 0.1% on the day. The daily RSI looks directionless in neutral territory while a slightly descending 20-DMA, currently just below the 136.00 figure, acts as the immediate resistance zone that has been intact since Jate-July. On the downside, the 100-DMA continues to act as a key support that capped the selling pressure last week. On the four-hour timeframes, the outlook remains neutral, which implies that the greenback could struggle around the current levels before deciding on the further direction. In a wider picture, the buck stays within a corrective mode, but the recent slide towards the ascending 20-week SMA hints as rising bearish risks.
Gold slipped from local highs on Friday to finish around $1,775. The XAUUSD pair struggles to attract demand at the start of the week, holding just below the mentioned zone during the European hours on Monday. The XAUUSD pair may challenge the $1,800 mark in the near term, but a decisive break looks unlikely at this stage. Furthermore, a bullish continuation would need a decisive break above the 200- and 100-DMAs, today at $1,840 and $1,843, respectively. On the downside, failure to regain $1,800 would shift the market focus back to the $1,755 area, followed by a slightly ascending 20-DMA, currently at $1,738. On the hourly timeframes, the technical picture has deteriorated in recent trading as the bullion fell back below the key SMAs while the RSI reversed south in neutral territory.