The buck struggles to attract demand amid positive risk sentiment across the financial markets
The USD keeps trending lower these days, as Treasury yields retreated from multi-year highs and risk demand strengthened. Last week, the greenback briefly jumped to fresh June highs around 104.45 and has been retreating since then as traders are fixing some profit after a rally. On Tuesday, the buck struggles to attract demand amid positive risk sentiment across the financial markets. Earlier in the session, the greenback briefly jumped above the 104.00 handle before retreating marginally. As such, the dollar holds just below 104.00, looking ready to extend its bearish consolidation in the near term. On the downside, the immediate support now arrives around 103.75, followed by 103.25 and the 103.00 zone. Still, the overall technical picture stays positive for the time being. Should the DXY see a more intense bearish pressure, a break below the 103.30 zone would open the way towards the 103.00 support. Meanwhile, EURUSD is back on the offensive, now trading slightly above the 20-DMA. The pair is changing hands around 1.0826 as of writing, up 0.1% on the day.
The cable keeps recovering since Monday, shrugging off the recent pressure as dollar demand ebbed. Earlier in the day, recovery attempts were capped by the 100-DMA. Since then, the pair has settled above 1.2600, still looking bearish while below both the 20- and 100-DMAs. So the pound is yet to regain the key moving averages in order to stage a bounce in earnest. Earlier in the session, the pair encountered support around 1.2585 before turning positive. The daily RSI looks bullish in neutral territory, suggesting the pair could overcome the mentioned 100-day SMA in the near term. In recent trading, GBPUSD was changing hands around 1.2629, up 0.22% on the day. On the downside, the immediate significant support is now represented by the 1.2600 level. On the upside, a decisive break above 1.2650 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 has been less volatile these days, trading slightly negative on Tuesday after peaking at fresh November highs around 146.75 at the start of the week. The pair has retreated from the peaks while staying elevated in recent trading. In early European deals on Tuesday, USDJPY holds above the 146.00 mark that now represents the immediate significant support. As the pair still stays well above the 20-DMA, downside risks remain limited in the near term. The dollar was last seen changing hands around 146.40, down 0.09% on the day. Now, the greenback needs to regain the 146.50 mark in order to extend the ascent. The daily RSI turned slightly lower in neutral territory, suggesting the dollar could take a pause in the immediate term before rallying to fresh multi-month highs. On the hourly timeframes, the technical picture looks neutral, with downside risks persisting as prices are now holding below the 20-SMA.
The price of gold had been trending higher since Monday, extending last week’s recovery from five-month lows seen in the $1,884 area earlier in the month. At the start of the week, the precious metal extended gains to the $1,926 area for the first time in three weeks. Still, the bullion lacked the momentum to challenge the descending 55-DMA, today at $1,931. Should the pressure reemerge any time soon, the bullion could get back below both the 20- and 200-DMAs. Gold was last seen changing hands around $1,923, up 0.22% on the day. On the weekly timeframes, the technical picture has improved somehow even as the metal stays well below the 20-SMA. On the upside, the immediate target is now represented by the $1,930 level, followed by the $1,950 zone where the mentioned SMA arrives. On the four-hour charts, the XAUUSD pair is holding below the 20-SMA while the RSI looks neutral, painting a mixed technical picture.