The euro has settled in a fairly tight range, challenging the 0.9860 support zone
The US dollar plunged ahead of the weekend due to dovish hints from Daly who downplayed the odds of another 75-bps hike in December. On Monday, the greenback bounced slightly to finish little changed while preserving the bullish bias today. The USD index has settled around 112.00 after a brief dip below 111.50 last week. As such, EURUSD failed to regain the 0.9900 figure to come under some selling pressure on Tuesday. The pair has settled in a fairly tight range, challenging the 0.9860 support zone in early European deals. On the positive side, the shared currency remains well above the 20-DMA following last week’s rally. On the four-hour charts, the technical picture looks mixed as the pair stays above the key moving averages while the RSI is pointing lower in neutral territory.
The cable briefly jumped above 1.1400 at the start of the week in a broad-based risk-on rally. However, the pair has retreated since then as some dollar demand reemerged. The cable came under pressure, but holds slightly positive on Tuesday despite the political uncertainty in the UK. The pound holds slightly above the 20-DMA that represents the immediate support around 1.1200. The pair was last seen changing hands around 1.1286, adding 0.12% on the day. Now, GBPUSD needs to regain the 1.1300 zone in order to stay afloat in the immediate term. On the positive side, the cable is 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.
Late last week, the greenback was pressured by reports that the Japanese authorities likely intervened in markets to stem the slide of the yen on Friday. The USDJPY pair briefly peaked just below 152.00 to plunge towards the 20-DMA around 146.00. The dollar finished around 147.70, down 1.66% on the day after twelve days of gains in a row. On Monday, the pair resumed the ascent to exceed the 149.00 handle as the overall pressure surrounding the USD has eased. As such, the greenback keeps clinging to the mentioned level today, refraining from challenging the 150.00 psychological level so far. On the downside, the immediate support now arrives at 148.50, followed by 147.50 mark and the 20-DMA, currently at 146.77. On the four-hour timeframes, the RSI stays neutral as well as the overall technical picture.
Gold rallied towards $1,670 at the start of the week to briefly derail the 20-DMA for the first time in more than a week. However, the precious metal failed to preserve gains and came under renewed pressure instead, holding below $1,650 on Tuesday. The XAUUSD pair slipped from the moving average (today at $1,668) to extend the descent towards $1,644 at the start of the week. Today, the yellow metal stays pressured amid the recovering dollar. The bullion was last seen changing hands around $1,648, shedding less than 0.01% on the day. The XAUUSD pair is likely to stay below the mentioned 20-DMA in the near term, with bearish risks persisting. On the downside, the nearest significant support now arrives at $1,640 zone. A failure to hold above this region would pave the way towards the $1,600 mark last seen in April 2020.