EURUSD has settled around the 0.9800 mark, holding relatively steady after recent recovery
The dollar bounced marginally after two days of solid losses. The USD index regained the 112.00 figure, but struggles to attract more robust demand despite the dominating risk-off tone across the financial markets. As such, EURUSD has settled around the 0.9800 mark, holding relatively steady after the recent recovery from fresh long-term lows seen last week. The pair has recovered somewhat, approaching a slightly descending 20-DMA, currently at 0.9887. The pair was last seen changing hands around 0.9820, up 0.21% on the day. The euro needs to overcome the mentioned 20-DMA in order to retarget parity. But the pair is unlikely to make a decisive break above the 1.00 handle any time soon, with downside risks persisting for the time being. The shared currency struggles to make a decisive move in either direction, refraining from a more robust recovery as risk sentiment remains subdued.
The pound has been advancing north for the fifth day in a row on Monday. Last week, GBPUSD fell to all-time lows around 1.0350 to bounce strongly eventually. The pair exceeded the 1.1000 mark to extend gains towards 1.1200 ahead of the weekend. Despite the recent bounce, the pound is yet to preserve the upside bias as the dollar is likely to regain the ascent after a short-lived pause. In the near term, the cable could stay on the offensive, flirting with the 20-DMA, currently at 1.1280. Should the prices fall back below 1.1200, the pair could retest the 1.1000 support zone, followed by the 1.0860 next barrier for USD bulls. On the hourly timeframes, the RSI has is back in neutral territory, while the price stays above the key SMAs, clinging to the upper end of the extended trading range.
USDJPY continues to hold steady after the recent jump in volatility, trading around 145.00 on Monday. Last week, the dollar briefly fell to 140.35 before bouncing back above the ascending 20-DMA that now continues to act as a key support zone. As such, the pair refrained from a major slump to regain the bullish bias that brought the prices back above 144.00. The pair was last seen changing hands around 145.00, adding 0.18% on the day. USDJPY holds steady at the mentioned levels, refraining from another retreat, suggesting the pair could retest multi-year tops in the near term. After some hesitation, USDJPY could climb back to the 145.90 zone to challenge 146.00. On the downside, the nearest support is represented by the mentioned moving average, today at 143.75, followed by the 142.70 intermediate support zone.
Gold prices have been trending slightly higher these days, struggling for direction on Monday. The bullion struggles to extend its recovery from 2.5-year lows seen last week. XAUUSD bounced off $1,614 to regain the $1,650 zone. The precious metal advanced towards the $1,665 zone, targeting the descending 20-DMA, followed by the $1,700 psychological level last seen in mid-September. At this stage, bullish extension could bring the price of gold to the mentioned 20-DMA. Sustained strength beyond this supply zone could trigger a more decisive short-covering move and allow buyers to reclaim the $1,700 mark. Otherwise, the selling pressure would reemerge to send the yellow metal back below the $1,640 region, followed by $1,620 and the $1,600 level last seen in April 2020.