The USD treads water just below the 103.00 level, staying resilient as risk aversion persists
The retains bullish bias on Monday, extending last week’s gains. Earlier in the day, the greenback briefly jumped to fresh highs above 103.00 before steadying. Now, the dollar treads water just below the psychological level, staying resilient as risk aversion persists. On the downside, the immediate support arrives around 102.80, followed by 102.40 and the 102.00 zone. As such, the technical picture stays positive for the time being even as the buck has so far failed to confirm a break above the 103.00 figure. Now that the dollar is back below this level, fresh drivers could be needed in the near term. Should the DXY see a renewed selling pressure, a break below the 102.80 zone would open the way towards a deeper retreat. Meanwhile, EURUSD stays mostly on the defensive, holding below the 1.1000 level after the recent dip to local lows marginally above the 1.0900 handle. The pair is changing hands around 1.0946 as of writing, up just 0.03% on the day.
The cable briefly jumped above 1.2800 last week to notch fresh local highs amid dollar’s volatility. Since then, however, the pair has retreated marginally as the greenback managed to preserve the upside momentum. During an earlier slide, the pair fell below the ascending 20-DMA and is yet to regain the key moving average, now holding below the 1.2700 psychological level. Earlier in the day, the pair derived support from the 1.2660 region. As a result, the daily RSI turned directionless in neutral territory, suggesting the pair could see some consolidation in the near term. In recent trading, GBPUSD was changing hands around 1.2689, down 0.04% on the day. On the downside, the immediate significant support is now represented by the 1.2660 zone, followed by the 1.2620 level. On the upside, a decisive break above 1.2700 would pave the way to a more sustained recovery. In a wider picture, the pound has been staying within a bullish trend since last September.
The USDJPY pair turned slightly lower in recent trading on Monday after a five-day rally. Earlier in the day, the pair briefly rallied to 145.22 before retreating marginally as the upside pressure surrounding the USD has eased somehow. The rally was followed by a slight decline as traders opted to take some profit. In early European deals, USDJPY holds above the 144.50 mark that now represents the immediate support. As the pair still holds well above the 20-DMA, downside risks look limited in the near term. The dollar was last seen changing hands around 144.90, down 0.1% on the day. Now, the greenback needs to confirm a break above the 145.00 mark in order to resume the ascent. The daily RSI turned slightly lower in neutral territory, suggesting the dollar could see fresh selling pressure in the immediate term before demand reemerges. On the hourly timeframes, the technical picture looks neutral, albeit downside risks persist even as prices keep holding above the 20-SMA.
The price of gold turned slightly higher after the recent slide, struggling to attract more decisive demand as the buying pressure surrounding the US dollar prevails. Earlier in the session, the precious metal extended losses to $1,910 before bouncing into positive territory, now holding around $1,915 as the prices stay vulnerable. Should the pressure reemerge any time soon, the prices could get back below the $1,910 zone that represents the immediate support at this stage. Gold was last seen changing hands around $1,914, up 0.1% on the day. On the weekly timeframes, the technical picture keeps deteriorating as the metal keep distancing itself from the 20-SMA. On the upside, the immediate target is now represented by the $1,935 level, followed by the $1,942 zone where the 55-DMA arrives. On the four-hour charts, the XAUUSD pair is holding below the 20-SMA while the RSI looks bullish, painting a mixed technical picture.