After a retreat from the 106.00 figure last week, the USD has settled around 105.75 on Monday
The US dollar struggles for direction on Monday after last week’s repeated dip below the 105.00 handle, this time towards 104.85. The USD index came under some selling pressure ahead of the weekend, bit managed to finish the week with solid gains to recoup half of previous week’s losses. After a retreat from the 106.00 figure last week, the USD has settled around 105.75 on Monday, struggling for direction after a failed bullish attempt. The DXY keeps oscillating above 105.50 today, regaining positive bias, with risk sentiment looking neutral-to-positive in the global financial markets. Against this backdrop, EURUSD has been rising for the second session in a row, holding around 1.0700 after a brief climb to the 1.0755 region last week. The pair remains stuck between the key SMAs that remain in the market focus for the time being. The pair is changing hands around 1.0693 as of writing, up 0.12% on the day after a brief climb to 1.0700 zone earlier in the day.
The pound bounced on Monday after solid losses witnessed last week, regaining a bearish tone following an aggressive retreat from local highs registered above 1.2400. Earlier today, the pair found resistance around 1.22245 before steadying. In early European deals, the cable has settled in positive territory, holding above the directionless 20-DMA, today at 1.2200. As such, the cable stays vulnerable now after recent volatility spikes. During the European deals, the pair looks upbeat, trying to attract demand after a fairly aggressive sell-off. 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 1.2237, up 0.13% on the day. On the flip side, the immediate significant support is now represented by the 1.2200 zone where the mentioned 20-SMA lies. On the upside, a decisive ascent above 1.2250 would pave the way to a more sustained bounce.
The USDJPY pair stays bullish these days, trading back above the 20-DMA. The dollar holds in positive territory during the European trading hours on Monday, rallying for the sixth day in a row. The pair has settled above the 151.00 figure, staying elevated despite the recent retreat. Also, the pair is now back above the ascending 20-DMA, suggesting upside risks persist for the time being. The dollar was last seen changing hands around 151.75, adding 0.16% on the day. In the process, the buck refreshed more than one-year highs, this time around 151.80. Now, the greenback needs to hold above the 151.00 mark in order to extend the ascent. The daily RSI looks bullish in neutral territory, suggesting the dollar could see more gains in the immediate term before steadying or retreating amid profit-taking. On the hourly timeframes, the technical picture looks upbeat, with prices holding above the key SMAs while the RSI holds just below the 70 handle, being on the verge of entering overbought territory.
The price of gold is back under pressure, struggling to regain upside bias since last week. The bullion slid from mid-May highs seen just above the $2,000 psychological level and has been mostly on the defensive since then. As such, the technical picture has deteriorated again as the bullion is back below the 20-SMA. After an earlier spike, the XAUUSD retreated below $1,950, staying on the defensive during the European hours on Monday. Should gold stay above the $1,930 zone in the near term, a local bounce could be expected. If the pressure intensifies any time soon, the bullion could see a more severe retreat in the days to come. Gold was last seen changing hands around $1,939, down 0.05% on the day. On the weekly timeframes, the bullion stays downbeat, trading in negative territory for the third week in a row. On the upside, the immediate significant target is now represented by the $1,950 region. On the four-hour charts, the XAUUSD pair is now below the key SMAs while the RSI looks neutral, painting a mixed technical picture.