USDJPY has settled below the 100-DMA after last week’s plunge towards late-August lows around 138.45
The dollar makes some recovery attempts on Monday as the currency licks wounds after a major sell-off witnessed last week. The USD index fell to three-month lows around 106.30 before bouncing slightly. The greenback has settled just below 107.00 since then, struggling to attract more decisive demand despite oversold conditions, suggesting the currency could come under renewed bearish pressure after some consolidation. As such, the euro came off last week’s peaks seen around 1.0365. EURUSD was last seen trading marginally above 1.0300, down 0.37% on the day. On the upside, the nearest resistance now arrives around 1.0370, followed by the 1.0460 zone last seen in early-July. In order to tighten the grips, euro bulls need validation from this level at this stage. In general, the near-term outlook for the European currency looks cautiously bullish, with recovery momentum persisting but looking fragile.
The pound peaked around 1.1855 last week before retreating marginally on Monday as some dollar demand reemerged. The cable slipped towards 1.1760 to hold above both the 20- and the 100-DMAs. The pair is unlikely to see a more aggressive decline at this stage as the dollar lacks demand across the board. Next, traders will focus on the US retail sales report due later in the week. Should the data come in higher than expected, the greenback may see a rally, thus pressuring GBPUSD. Now, the pound needs to regain the 1.1800 level in order to retain a bullish tone and extend the ascent during the week. On the negative side, the daily RSI turned south in neutral territory, suggesting the cable could at least refrain from bullish extension in the near term. GBPUSD was last seen changing hands around 1.1764, down 0.59% on the day.
The USDJPY pair has settled below the directionless 100-DMA after last week’s plunge that pushed the dollar to late-August lows around 138.45. The greenback stays on the defensive since then, albeit refraining from another major retreat on Monday. The pair holds below the mentioned moving average, today at 140.80, with the near-term technical picture looking bearish. At the same time, a broader uptrend stays intact while above the 125.00 zone last seen in April. As a reminder, USDJPY notched fresh multi-year highs around 152.00 in October to finish the third consecutive month with solid gains. In the immediate term, the greenback needs to regain 140.00 in order to avoid another retreat. Otherwise, the pair is likely to suffer fresh losses, with the 135.00 support zone coming into the market focus at this stage. The USD was last seen trading around 139.23, up 0.32% on the day.
During the latest rally, gold exceeded the $1,750 psychological level for the first time since August to extend gains towards three-month highs around $1,772. After peaking, the bullion retreated marginally amid profit-taking to settle around $1,760 on Monday. During the recent rally, the bullion briefly derailed the descending 100-DMA, adding to an upbeat technical picture. The precious metal struggles for direction at the start of the week while also staying above the $1,750 mark that remains in focus for the time being. The bullion was last seen changing hands around $1,762, down 0,2% on the day. The XAUUSD pair is likely to stay above the mentioned 100-DMA in the near term, but bearish risks persist despite the recent rally. On the downside, the nearest significant support now arrives at $1,750, followed by the $1,725 zone.