The USD index looks ready to extend its ascent towards 106.90 if the buying pressure persist
The US dollar extends its ascent on Tuesday, holding above the 106.00 zone as buying interest persists around fresh November highs registered around 106.20 earlier in the session. Now, the buck seems to have enough upside momentum to challenge fresh multi-month tops in the near term, especially as the DXY keeps trading above the 106.00 figure that represents the immediate support at this stage. The greenback keeps deriving support from a hawkish Fed meeting outcome that added to the dollar’s appeal. The USD index looks ready to extend its ascent towards 106.90 if the buying pressure persists. A wider technical picture stays positive as well. Should the DXY see further bullish pressure, a decisive break above the 106.20 zone would open the way towards fresh November highs. Meanwhile, EURUSD retains a bearish bias on Tuesday, staying below the key SMAs that turned back into resistance levels after an earlier sell-off. The pair is changing hands below 1.0600 as of writing, down 0.03% on the day.
The cable found resistance represented by the 20-DMA at the start of last week and has been trending lower since then. Furthermore, the pair fell below 1.2200 to register fresh March lows around 1.2167 in recent trading. The pound struggles to bounce so far despite oversold conditions. Now, the pound holds around the lower end of the extended trading range, also staying below the key SMAs. During the European deals, the pair has settled in negative territory, struggling to attract demand at this stage. The daily RSI looks bearish in oversold territory, suggesting the pair could stay on the defensive in the immediate term before bouncing. In recent trading, GBPUSD was changing hands around 1.2171, down 0.32% on the day. On the downside, the immediate significant support is now represented by the 1.2150 zone. On the upside, a decisive recovery above 1.2200 would pave the way to a more sustained bounce.
The USDJPY keeps adding to gains these days as the Japanese yen struggles to attract demand. The dollar looks directionless during the European trading hours on Tuesday, holding just below fresh October highs seen around 149.18 earlier in the day. The pair has settled just below the 149.00 figure, staying elevated despite overbought conditions. As the pair still stays above the ascending 20-DMA, downside risks remain limited in the near term. The dollar was last seen changing hands around 148.83, down 0.05% on the day. Now, the greenback needs to make a decisive break above the 149.00 region in order to extend the rally. The daily RSI turned slightly lower, staying in neutral territory, suggesting the dollar could see some bearish consolidation in the immediate term before resuming the ascent. On the hourly timeframes, the technical picture has deteriorated somewhat, with downside risks persisting as prices are now below the 20-SMA while the RSI is correcting lower in neutral territory.
The price of gold failed to shrug off the renewed pressure, trading with bearish bias since peaking at $1,947 last week. After a slide from local highs, the precious metal dipped back below the key SMAs that turned back into resistance. Now, the bullion holds around the lower end of a local trading range, lacking the momentum to regain the $1,920 zone that represents the nearest barrier for buyers. Should the pressure intensify any time soon, the bullion could threaten the $1,900 zone. Gold was last seen changing hands around $1,915, down 0.13% 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 $1,920 region, followed by the $1,924 region where the 20-DMA arrives. On the four-hour charts, the XAUUSD pair has settled below the key SMAs while the RSI looks directionless, painting a mixed technical picture.