The next major target now arrives at 111.00 while a break below 109.60 would give some relief for USD bears
The US dollar advanced to fresh two-decade highs above the 110.00 figure at the start of the week due to a combination of risk-averse environment and rising expectations for another 75-bps rate hike by the Fed. The USD index briefly jumped to 110.27 before retreating marginally. the USD index could extend its ascent above 110.00 in the coming days, with upside risks persisting despite the overbought conditions. The next major target now arrives at 111.00. On the downside, a break below 109.60 would give some relief for USD bears, but the overall uptrend should remain intact as long as the prices stay above the 100.00 psychological level last seen in April. The euro fell below 0.9900 for the first time since December 2002 earlier in the day to trim most of the intraday losses in recent trading. A failure to regain the 0.9940 zone in the near term would bring extra selling pressure.
The cable extended the decline towards fresh March 2020 lows around 1.1443 and was last seen changing hands around 1.1488, adding 0.45% on the day. The pair stays below the 1.1500 figure following the latest slump, with bearish potential persisting at this stage, especially as the pair keeps distancing itself from the descending 20-DMA, today at 1.1853. The immediate upside target now arrives at 1.1500, followed by the 1.1540 zone. On the four-hour charts, the bearish momentum has eased somehow as the RSI bounced from oversold territory, flirting with the 30 figure, suggesting the selling momentum could slow down at this stage. On the longer-term timeframes, the technical picture stays negative, with the prices holding below the key weekly SMAs while the RSI keeps pointing lower despite the oversold conditions.
USDJPY has been advancing north for the seventh session in a row on Monday, holding around more than twenty-year highs beyond the 140.00 figure. The pair advanced towards the 140.80 zone on Friday and was last seen clinging to the upper end of the extended trading range, adding 0.13% on the day. As such, the pair keeps holding well above the ascending 20-DMA, today at 136.60 while the daily RSI is entering the overbought territory. The dollar was last seen trading around 140.50. In the near term, USDJPY needs to hold above the 140.00 mark for the overall bullish momentum to persist. A decisive rally above the mentioned highs would bring fresh long-term tops into the market focus. The next major target for USD bulls now arrived at 141.00. On the downside, the prices could get back below 139.00 in case of profit-taking.
Gold prices saw a three-day losing streak that has brought the prices to nearly 1.5-month lows around $1,688 last week. The bullion bounced on Friday to finish around $1,711, trading directionless at the start of the week. The technical picture has improved somehow after the precious metal regained the $1,700 figure, but the overall the outlook on the weekly timeframes still looks bearish. After the latest sell-off, the XAUUSD pair bounced due to a dip-buying strategy while the dollar remains elevated, capping recovery potential in the gold market. The yellow metal regained the $1,710 figure but is yet to get back above the $1,735 intermediate barrier in order to see more robust recovery. The daily RSI reversed north, bouncing from the 30 mark, suggesting the prices could retain a bullish bias in the near term. Should the selling pressure reemerge any time soon, XAUUSD would easily fall back below $1,700 and could threaten the $1,680 zone that helped cap the decline in July.