After the initial dip, the USD failed to bounce back into positive territory, suggesting the currency could stay on the defensive at this stage
The US dollar briefly dipped below the 105.00 handle for the first time in 1.5 months before steadying. The USD index came under severe selling pressure on Friday in the aftermath of a key US jobs report that showed weaker than expected employment and wages figures. As a result, the greenback finished around the 105.00 zone, staying on the defensive on Monday as risk demand reemerged in the aftermath of the Fed meeting and dismal jobs data. After the initial dip, the USD failed to bounce back into positive territory, suggesting the currency could stay on the defensive in the immediate term. The DXY keeps oscillating around 105.00 on Monday, struggling to regain positive bias as positive risk sentiment persists. Meanwhile, EURUSD shrugged off the selling pressure after the recent dip to the 1.0515 zone that capped the sell-off last week. As such, the pair is back above the 1.0700 figure that remain in the market focus for the time being. The pair is changing hands around 1.0737 as of writing, up 0.09% on the day after a brief climb to 1.0745 zone ahead of the weekend.
The pound keeps rising after Friday’s rally, retaining a solid bullish tone at the start of the week. Earlier today, the pair found support around 1.2360 before bouncing marginally. In early European deals, the cable has settled in positive territory, approaching the directionless 200-DMA that has been capping gains since mid-September. As such, the cable is slightly on the offensive now after recent volatility spikes, buoyed by a weaker dollar. During the European deals, the pair looks upbeat, struggling to attract more robust demand after a fairly aggressive rally. The daily RSI looks directionless in neutral territory, suggesting the pair could see more hesitation in the immediate term. In recent trading, GBPUSD was changing hands around 1.2381, up 0.06% on the day. On the flip side, the immediate significant support is now represented by the 1.2300 zone. On the upside, a decisive ascent above the mentioned 200-SMA, today at 1.2435, would pave the way to a more sustained bounce.
The USDJPY pair turned more volatile these days, oscillating back below the 20-DMA. The dollar holds in positive territory during the European trading hours on Monday, licking wounds after a three-day slide from fresh one-yar peaks seen around 151.70 last week. The pair has settled below the 150.00 figure, staying elevated despite recent retreat. However, as the pair is now below the ascending 20-DMA, downside risks persist in the near term. The dollar was last seen changing hands around 149.56, adding 0.14% on the day. Now, the greenback needs to regain the 150.00 mark in order to resume the ascent. The daily RSI looks directionless in neutral territory, suggesting the dollar could hesitate for some time in the immediate term before steadying or rising following profit-taking. On the hourly timeframes, the technical picture looks mixed, with prices holding slightly above the descending 20-SMA while the RSI remains neutral.
The price of gold bounced slightly on Friday to trim weekly losses. The bullion slid from mid-May highs seen 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, staying on the defensive during the European hours on Monday. 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 $1,983, down 0.47% on the day. On the weekly timeframes, the bullion still looks upbeat despite trading in negative territory. On the upside, the immediate target is now represented by the $2,000 region. On the four-hour charts, the XAUUSD pair is now below the 20-SMA while the RSI looks downbeat, suggesting the pair could struggle in the immediate term.