The precious metal dipped back below the key SMAs that turned back into resistance levels
The US dollar’s rally has stalled on Monday, with the USD index holding just above the 106.00 zone as buying interest has waned somehow around fresh November highs registered around 106.84 last week. Now, the buck seems not to have enough upside momentum to challenge fresh multi-month tops in the near term, even as the DXY keeps trading above the 106.00 key figure that represents the immediate significant support at this stage. The greenback keeps deriving support from a hawkish Fed that added to the dollar’s safe-haven appeal. After a pause, the USD index could extend its ascent towards 107.00 once the buying pressure reemerges. A wider technical picture stays positive. Should the DXY see further bullish pressure, a decisive break above the 106.85 zone would open the way towards fresh multi-month tops. Meanwhile, EURUSD keeps recovering after touching early-2023 lows seen at 1.0488. The pair is changing hands around 1.0578 as of writing, up 0.08% on the day.
The cable found support around fresh March lows just above the 1.2100 figure last week and has been recovering since then. The pair has settled around 1.2200 on Monday after a brief rally towards 1.2270 ahead of the weekend. The pound keeps trending higher for the third session in a row on Monday, but still lacks the momentum to stage a more robust bounce despite oversold conditions. Now, the pound holds slightly above the lower end of the extended trading range, also staying below the key SMAs. During the European deals, the pair has settled in positive territory, trying to attract more demand at this stage. The daily RSI stays directionless in oversold territory, suggesting the pair could see some further relief in the immediate term before resuming the downside move. In recent trading, GBPUSD was changing hands around 1.2199, up 0.02% on the day. On the downside, the immediate significant support is now represented by the 1.2175 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 stays slightly positive during the European trading hours on Monday, holding just below fresh October 2022 highs seen around 149.82 earlier in the previous session. The pair has settled above the 149.50 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 149.70, up 0.25% on the day. Now, the greenback needs to make a decisive break above the 149.80 region in order to extend the rally towards the 150.00 psychological level. The daily RSI turned slightly higher, staying in neutral territory, suggesting the dollar could see some consolidation in the immediate term before rallying to fresh tops. On the hourly timeframes, the technical picture has improved somewhat, with upside risks persisting as prices are now back above the 20-SMA while the RSI is trending higher in neutral territory.
The price of gold keeps bleeding, trading with bearish bias since peaking at $1,947 earlier in the month. After a slide from local highs, the precious metal dipped back below the key SMAs that turned back into resistance levels. Now, the bullion holds around the lower end of a local trading range, further distancing itself from the $1,900 zone. Should the pressure intensify any time soon, the bullion could threaten the $1,825 zone for the first time since March. Gold was last seen changing hands around $1,840, down 0.55% on the day. On the weekly timeframes, the bullion now looks even more vulnerable as the metal dipped below the key SMAs. On the upside, the immediate target is now represented by the $1,850 region, followed by the $1,865 zone. On the four-hour charts, the XAUUSD pair has settled below the key SMAs while the RSI looks slightly bearish, painting a mostly negative technical picture.