The greenback looks ready to extend its ascent after some hesitation
The US dollar is slightly lower on Monday, holding steady despite some downside pressure. Still, the buck lacks the upside momentum after solid gains seen last week when the prices surged to fresh multi-month highs just below the 105.50 zone. The greenback stays above the 105.00 figure that represents the immediate support at this stage. Today, the buck struggles for direction, deriving support from the 105.15 zone ahead of the Fed meeting that the tone for the currency later in the week. The dollar looks ready to extend its ascent after some hesitation. On the downside, the immediate support now arrives around 105.00, followed by the 104.70 zone. A wider technical picture stays positive as well. Should the DXY see renewed bullish pressure, a decisive break above the 105.50 zone would open the way towards fresh March highs. Meanwhile, EURUSD retains a modest bullish bias on Monday, but still holding below the key SMAs that turned back into resistance levels after an earlier sell-off. The pair is changing hands around 1.0663 as of writing, up 0.08% on the day.
The cable bounced at the start of the week, but failed to extend the ascent and came under renewed pressure that dominates these days. Furthermore, earlier in the session, the pair briefly fell to 1.2374 for the first time since June before bouncing marginally amid oversold conditions. Now, the pound holds just below the 1.2400 region, targeting the 200-DMA that arrives at 1.2432. During the European deals, the pair has settled in positive territory, still staying far below the key SMAs. The daily RSI looks directionless, flirting with oversold territory, suggesting the pair could see some consolidation in the immediate term. In recent trading, GBPUSD was changing hands around 1.2390, up just 0.02% on the day. On the downside, the immediate significant support is now represented by the 1.2370 zone. On the upside, a decisive recovery above 1.2400 would pave the way to a more sustained bounce.
The USDJPY pair is slightly on the defensive at the start of the week amid fresh recovery attempts in the Japanese yen. The dollar is trading in negative territory on Monday after peaking at fresh November highs around 147.95 late last week. The pair has retreated slightly from the peaks while staying elevated in recent trading. In European deals today, USDJPY holds above the 147.50 zone that now represents the immediate support level. 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 147.64, down 0.11% on the day. Now, the greenback needs to regain the 147.80 region in order to retarget fresh multi-month highs around 148.00. The daily RSI turned slightly lower in neutral territory, suggesting the dollar could see more selling pressure in the immediate term before rallying to fresh tops. On the hourly timeframes, the technical picture looks neutral, with upside risks persisting as prices are now holding above the key SMAs while the RSI looks directionless for the time being.
The price of gold shrugged off the recent pressure, trading with upside bias since finding support just above the $1,900 psychological level last week. After a bounce, the precious metal regained both the 20- and 200-DMAs, now flirting with the 55-DMA. During the previous session, XAUUSD briefly rallied to this SMA before losing some momentum. Now, the bullion holds around the upper end of a local trading range, lacking the momentum to regain the $1,930 zone that represents the nearest barrier for buyers. Should the pressure reemerge any time soon, the bullion could threaten the $1,922 zone where the mentioned SMAs arrive. Gold was last seen changing hands around $1,927, up 0.11% on the day. On the weekly timeframes, the bullion still looks vulnerable as the metal remains under the 20-SMA that continues to cap gains. On the upside, the immediate target is now represented by the $1,930 region where the 55-DMA arrives, followed by the $1,938 intermediate barrier. On the four-hour charts, the XAUUSD pair has settled above the key SMAs while the RSI has turned slightly lower, painting a mixed technical picture.