The dollar looks ready to extend its slightly bearish consolidation in the near term
The USD holds steady around the 104.00 figure on Monday, struggling to extend the recent ascent as risk demand dominates global financial markets. Late last week, the greenback briefly jumped local highs around 104.30 before retreating marginally. As such, the buck turned slightly negative, struggling to attract more robust demand after finishing in green territory for the seventh week in a row. The dollar now holds marginally above 104.00, looking ready to extend its bearish consolidation in the near term. On the downside, the immediate support now arrives around 103.90, followed by 103.60 and the 103.00 zone. Still, a wider technical picture stays positive for the time being. Should the DXY see a more intense bearish pressure, a break below the 103.00 zone would open the way towards deeper losses. Meanwhile, EURUSD turned positive on Monday, but still holds below the key SMAs that turned back into resistance levels after last week’s sell-off. The pair is changing hands around 1.0800 as of writing, up 0.24% on the day.
The cable bounced on Monday after a two-day slide. During the previous session, the pair dipped below the 20- and 100-DMAs to find support around 1.2577. Since then, the pair has settled above 1.2600, now looking indecisive as the cable is yet to regain the 20-DMA, today at 1.2668. Earlier in the session, the pair encountered support around 1.2580 before bouncing. So far, another bullish attempt is being capped by the 1.2635 intermediate barrier. The daily RSI looks upbeat in neutral territory, suggesting the pair could see more demand in the near term. In recent trading, GBPUSD was changing hands around 1.2633, up 0.36% on the day. On the downside, the immediate significant support is now represented by the 1.2580 zone. On the upside, a decisive break above 1.2650 (100-DMA) 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 in positive territory on Monday after peaking at fresh November highs around 147.37 last week. The pair has retreated from the peaks while staying elevated in recent trading. In European deals on Monday, USDJPY holds above the 146.00 mark that now represents the immediate support. As the pair still stays above the 20-DMA, downside risks remain limited in the near term. The dollar was last seen changing hands around 146.33, up 0.1% on the day. Now, the greenback needs to regain the 147.00 mark in order to retarget the mentioned multi-month highs. The daily RSI turned slightly lower in neutral territory, suggesting the dollar could take a pause in the immediate term before rallying to fresh tops. On the hourly timeframes, the technical picture has deteriorated somewhat, with upside risks persisting as prices are now holding above the key SMAs while the RSI is pointing lower in neutral territory.
The price of gold looks steady at the start of the week, extending last week’s recovery from five-month lows seen in the $1,884 area in August. During the previous session, the precious metal extended gains to the $1,953 area for the first time in a month. Still, the bullion lacked the momentum to challenge the descending 100-DMA that deterred bulls. Should the pressure reemerge any time soon, the bullion could get back below the 55-DMA, today at $1,930. Gold was last seen changing hands around $1,942, up less than 0.1% on the day. On the weekly timeframes, the technical picture has improved somehow as the metal has approached the 20-SMA for the first time in a month. On the upside, the immediate target is now represented by the $1,955 level where the mentioned 100-day SMA arrives. On the four-hour charts, the XAUUSD pair is challenging the 20-SMA while the RSI has corrected lower, painting a mixed technical picture.