After the initial dip towards the 106.00 support zone, the USD index climbed back into positive territory
The US dollar bounced marginally on Tuesday after a solid slide witnessed during the previous session, thus resuming the recent ascent from local lows seen around 105.35 earlier in the month. After the initial dip towards the 106.00 support zone, the USD index climbed back into positive territory. Today, the DXY is trading around 106.35, regaining positive bias as buying interest has reemerged. So, the buck is now slightly below cyclical tops and could retest the 107.00 figure if the buying pressure intensifies in the near term. A wider technical picture stays positive as well. Should the DXY see a more intense bullish momentum, a decisive break above the 107.00 zone would open the way towards nearly one-year highs seen around 107.35 earlier this month. Meanwhile, EURUSD came under renewed selling pressure after the recent local rally the 1.0625 intermediate resistance that capped the ascent yesterday. As such, the pair is back around the 1.0600 figure that remain in the market focus for the time being. The pair is changing hands around 1.0607 as of writing, down 0.05% on the day after a brief climb to 1.0617 zone earlier in the day.
The pound came under renewed selling pressure after a brief spike seen at the start of the week. Earlier today, the pair found support around 1.2136 before bouncing marginally. In early European deals, the cable has settled in negative territory, staying below the descending 20-DMA that has been capping gains these days. Earlier in the week, GBPUSD briefly touched this SMA but failed to preserve the momentum. As such, the cable is on the defensive now after recent volatility spikes, struggling to regain the upside bias as dollar demand persists. During the European deals, the pair looks downbeat, struggling to attract demand at this stage. The daily RSI points slightly lower in neutral territory, suggesting the pair could see more bearish attempts in the immediate term. In recent trading, GBPUSD was changing hands around 1.2148, down 0.15% on the day. On the flip side, the immediate significant support is now represented by the 1.2100 zone. On the upside, a decisive recovery above the 20-SMA, today at 1.2180, would pave the way to a more sustained bounce.
The USDJPY turned more volatile these days, oscillating round the 20-DMA. The dollar holds in positive territory during the European trading hours on Tuesday, holding below fresh October 2022 highs seen around 150.77 last week. The pair has settled slightly above the 150.00 figure, staying elevated despite overbought conditions. As the pair still stays mostly above the ascending 20-DMA, downside risks remain limited in the near term. The dollar was last seen changing hands around 150.15, adding 0.71% on the day. Now, the greenback needs to confirm a break above the 150.00 mark in order to extend the ascent. The daily RSI points north in neutral territory, suggesting the dollar could see some fresh positive momentum in the immediate term before steadying or retreating amid a potential profit-taking. On the hourly timeframes, the technical picture looks mixed, with prices holding above the key SMAs while the RSI is exiting overbought territory.
The price of gold bounced aggressively at the end of last week to register mid-May highs just above the $2,000 psychological level. Earlier in the month, the metal briefly dipped to fresh March lows around $1,810 before bouncing strongly. Now, the technical picture has improved as the bullion is holding well above the key SMAs. After another mentioned spike, the XAUUSD retreated below $2,000, struggling for direction during the European hours on Tuesday. Should gold stay above the $1,980 zone in the near term, the $2,000 high will come back into the market focus. If the pressure intensifies any time soon, the bullion could get back below the mentioned support. Gold was last seen changing hands around $1,996, unchanged on the day. On the weekly timeframes, the bullion looks upbeat as the metal bounced strongly from the key SMAs. On the upside, the immediate target is now represented by the $2,000 region. On the four-hour charts, the XAUUSD pair is still above the 20-SMA while the RSI shows a modest bullish bias, suggesting the pair could resume the ascent in the immediate term.