After an early rally towards 143.50, USDJPY retreated back below 143.00, threatening the 142.00 support zone
The US dollar stays pressured on Tuesday, albeit holding around the 108.00 figure after yesterday’s brief dip towards 107.80. The USD index remains on the defensive amid the ongoing profit-taking after last week’s jump to fresh two-decade highs seen just below the 111.00 figure. As such, EURUSD retains a bullish bias, holding above 1.01 on Tuesday. However, the shared currency stays below nearly one-month highs seen around 1.02 at the start of the week. The shared currency was last seen changing hands around 1.0147, adding 0.28% on the day. A daily close around 1.02 would be a confirmation of another short-term breakout. However, the euro would stay depressed in a wider picture, with bearish risks persisting in the longer-term. On the downside, the nearest support now arrives 1.0120, followed by the 1.0100 mark.
GBPUSD has been climbing north for the third session in a row on Tuesday as the US dollar keeps retreating from multi-year tops seen last week. In the process, the pair derailed the descending 20-DMA for the first time in nearly a month and extended recovery to the 1.1730 zone to register fresh September highs before retreating marginally. In the near term, GBPUSD needs to confirm a break above 1.1700 on a daily closing basis in order to preserve the latest gains. Otherwise, the pair may fall back below both the mentioned moving average and the 1.1600 mark. On the upside, should the cable extend the ascent6 the next major target could be expected around 1.1820, followed by the 1.1930 zone and the 1.2000 psychological level. However, the pound is unlikely to stage a sustained and robust rally at this stage as dollar demand could reemerge at any point.
USDJPY gained on Monday to finish off intraday highs registered around 143.50. The pair failed to preserve the upside bias and came under renewed downside pressure today, albeit staying above 142.00 so far. As such, after an early rally towards 143.50, the prices retreated back below 143.00, threatening the 142.00 support zone now. Still, the pair keeps holding well above the ascending 20-DMA, today at 139.45. The dollar was last seen trading around 142.30, down 0.36% on the day. In the near term, USDJPY needs to hold above the 142.00 mark for a broader bullish momentum to persist. Should the buying pressure surrounding the US dollar reemerge, a decisive rally above 145.00 would bring fresh long-term tops into the market focus. The next major target for USD bulls now arrives at 147.00. On the downside, the prices could get back below 140.00 in case of a deeper retreat in the near term.
Gold price extended its uneven recovery at the start of the week due to a weaker US dollar. The precious metal regained the $1,700 psychological level and exceeded the $1,730 zone to notch September highs around $1,735. However, the buying pressure surrounding the metal has eased on Tuesday as the bullion failed to confirm a break above the descending 20-DMA, today at $1,729. As such, the upside potential remains limited as expectations of more interest rate hikes by the Fed will continue to cap further gains. The XAUUSD pair was last seen changing hands around $1,725, unchanged on the day. In the immediate term, the metal needs to hold above $1,720 and retest the mentioned moving average in order to stay afloat.
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