The shared currency needs to overcome the 0.9900 mark in order to extend the ascent along with stocks in the near term
The US dollar stays under pressure, struggling after a failure to regain the 114.00 figure last week. After a solid plunge witnessed at the start of the week, the USD index keeps losing ground today, trading below the 112.00 mark in early European deals. The US currency lacks demand as risk-on tone persists, preventing the safe-haven US currency from another rally. Against this backdrop, EURUSD edged higher to regain the descending 20-DMA, today at 0.9770. The pair advanced towards the 0.9870 zone on Tuesday, adding nearly 0.3% on the day. Now, the shared currency needs to overcome the 0.9900 mark in order to extend the ascent along with stocks in the near term. On the four-hour charts, the RSI looks directionless in neutral territory, suggesting the upside momentum could be waning already. On the downside, the immediate support now arrives at 0.9820, followed by 0.9800 and the mentioned 20-DMA.
The cable briefly jumped to 1.1440 at the start of the week in a broad-based risk-on rally. However, the pair has retreated partially since then after finishing below 1.1400. The cable came under some pressure on Tuesday as the buying momentum has eased somehow. Now, the pair needs to hold above 1.1300 in order to stay afloat in the immediate term. On the positive side, the cable has settled above the 20-DMA, while also holding off historic lows registered last month around 1.0350. Earlier in October, the rally for the pair was capped by the 1.1500 figure, pushing the prices back below 1.1000. GBPUSD was last seen flirting with the 1.1330 figure, shedding 0.21% on the day. Should the prices fail to stay above 1.1300 in the near term, the pair could retest the mentioned the mentioned moving average, today at 1.1130.
USDJPY has steadied on Tuesday been after nine bullish sessions in a row. The pair exceeded the 148.00 figure for the first time in more than 30 years to extend the ascent to the 149.08 zone. The dollar was last seen changing hands around 149.00, unchanged on the day. The fact that the prices keep clinging to the upper end of the extended trading range suggests the greenback could extend the ascent despite overbought conditions. As such, USDJPY continues to hold steady after the recent jump and could target fresh long-term highs in the near term. Now, USDJPY needs to confirm a break above 149.00 on a daily closing basis and refrain from a major retreat amid overbought conditions. On the downside, the immediate support now arrives at 148.40, followed by the 148.00 mark and the 147.60 zone. On the four-hour timeframes, the RSI stays resilient in overbought territory, with the overall technical picture looking strongly bullish.
Gold capitalized slightly on dollar weakness, staging a bounce from fresh October lows around $1,640 last week after another failed attempt to regain the 20-DMA, today at $1,669. The bullion failed to challenge the $1,670 zone on Monday to finish with modest gains. Today, the yellow metal struggles for direction around $1,650 as the selling pressure surrounding the US dollar seems to be easing. The XAUUSD pair could stay below the $1,700 figure in the near term, with the 20-DMA representing the immediate upside target for potential buyers. On the downside, the nearest significant support now arrives at $1,640, followed by the key $1,614 zone that capped the plunge last month. On the weekly timeframes, the price of gold holds below the key moving averages while the RSI looks directionless in neutral territory, painting a mixed-to-negative technical picture.