The buck has settled in negative territory, deriving support from the 104.50 zone so far
The US dollar turned slightly lower on Monday after solid gains seen last week when the prices surged to fresh multi-month highs around 105.15. During the previous session, the greenback briefly finished above 105.00 before retreating at the start of the week. Today, the buck has settled in negative territory, deriving support from the 104.50 zone so far. The dollar looks ready to extend its ascent after some profit-taking in the near term. On the downside, the immediate support now arrives around 104.50, followed by the 104.10 zone. A wider technical picture stays positive as well. Should the DXY see a more intense bullish pressure, a decisive break above the 105.00 zone would open the way towards fresh March highs. Meanwhile, EURUSD turned slightly higher on Monday, but still holding below the key SMAs that turned back into resistance levels after ab earlier sell-off. The pair is changing hands around 1.0729 as of writing, up 0.29% on the day.
The cable bounced strongly on Monday after a four-session slide. Late last week, the pair briefly fell to 1.2445 for the first time since June before attracting some demand amid oversold conditions. Today, the pound extended recovery to the 1.2535 region as the prices managed to get back above the 1.2500 figure. During the European deals, the pair has settled around the upper end of the intraday trading range, looking ready to further distance itself from the mentioned lows in the near term. The daily RSI looks upbeat in neutral territory, suggesting the pair could see more gains in the immediate term. In recent trading, GBPUSD was changing hands around 1.2533, up 0.56% on the day. On the downside, the immediate significant support is now represented by the 1.25000 zone. On the upside, a decisive recovery above 1.2550 would pave the way to a more sustained bounce.
The USDJPY pair retreats amid the yen’s recovery, trading in negative territory on Monday after peaking at fresh November highs around 147.87 last week. The pair has retreated from the peaks while staying elevated in recent trading. In European deals on Monday, USDJPY holds above the 146.50 zone that now represents the immediate bearish target. 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 146.68, down 0.77% on the day. Now, the greenback needs to regain the 147.00 region in order to retarget fresh multi-month highs. The daily RSI turned lower in neutral territory, suggesting the dollar see more selling pressure in the immediate term before rallying to fresh tops. On the hourly timeframes, the technical picture has improved somewhat, with downside risks persisting as prices are now holding below the key SMAs while the RSI looks neutral for the time being.
The price of gold looks relatively steady on Monday, extending Friday’s recovery as dollar demand wanes. Last week, the precious metal extended losses to the $1,915 area where the key SMAs capped the decline. Earlier today, XAUUSD briefly fell to $1,916 before bouncing into positive territory. Still, the bullion lacks the momentum to regain the directionless 55-DMA that deterred bulls earlier in the day. Should the pressure reemerge any time soon, the bullion could threaten the 20- and 200-DMAs that converged last week around the mentioned local lows. Gold was last seen changing hands around $1,925, up 0.34% on the day. On the weekly timeframes, the bullion still looks vulnerable as the metal remains under the 20-SMA that capped gains last week. On the upside, the immediate target is now represented by the $1,930 region (55-DMA), followed by the $1,949 level where the 100-day SMA arrives. On the four-hour charts, the XAUUSD pair has settled around the 200-SMA while the RSI has turned slightly lower, painting a still bearish technical picture.