The US currency struggles to attract more decisive buying interest as traders remain cautious after a sell-off
The US dollar retains a modest bearish bias on Monday after a brief dip to early-September lows around 103.55 earlier in the day. Last week, the USD index came under severe selling pressure in the aftermath of a weaker-than-expected US inflation report and has been on the defensive since then. After finding support around the mentioned lows, the USD trimmed intraday losses. Still, the currency struggles to attract more decisive buying interest as traders remain cautious after a sell-off. The DXY is oscillating around 103.75 in early European deals, looking modestly downbeat, with risk sentiment slightly positive in the global financial markets. Against this backdrop, EURUSD jumped to fresh late-August highs around 1.0935 early on Monday before retreating partially. The pair is changing hands around 1.0915 as of writing, up 0.08% on the day amid a weaker dollar. In the immediate term, the euro needs to hold above 1.0900 in order to extend the ascent.
The pound has been edging north for the second session in a row on Monday amid persisting pressure surrounding the USD. The pair peaked just below the 1.2500 figure that capped the bullish momentum and triggered some profit-taking. As such, the pair again came across resistance represented by the 100-DMA that capped the rally last week. In early European deals, the cable has settled in positive territory, holding above the directionless 200-DMA, today at 1.2447. As such, the cable stays upbeat now after rejection from the 100-DMA. During the European deals, the pair keeps trying to attract more robust demand. The daily RSI looks bullish in neutral territory, suggesting the pair could see more upside attempts in the immediate term. In recent trading, GBPUSD was changing hands around 1.2477, up 0.14% on the day. On the flip side, the immediate significant support is now represented by the 1.2460 zone, followed by the 1.2400 intermediate barrier on the way towards 1.2370. On the upside, a decisive ascent above 1.2500 would pave the way to another rally.
The USDJPY keeps losing ground these days as the US dollar stays under pressure across the board. However, the greenback managed to trim intraday losses after finding a local bottom around the 148.70 figure. After a modest recovery, the pair stays below the 149.00 figure that represents the immediate upside target for the time being. After finding support, the dollar holds in negative territory during the European trading hours on Monday. Also, the pair stays well below the 20-DMA, suggesting downside risks still persist for the time being. The dollar was last seen changing hands around 148.90, down 0.45% on the day. Now, the greenback needs to regain the 149.00 mark in order to resume the ascent. The daily RSI looks bearish in neutral territory, suggesting the dollar could lack the recovery momentum in the immediate term. On the hourly timeframes, the technical picture looks downbeat, with prices holding below the key SMAs.
The price of gold is slightly bullish after a short-lived jump to local highs around $1,993 during the previous session. In the process, the metal regained the directionless 20-DMA that turned back into support. As such, the technical picture has improved again even as the bullion is still below the $2,000 psychological level. After last week’s brief dip to the $1,930 zone for the first time in nearly a month, the XAUUSD bounced back above the $1,970, zone, staying upbeat during the European hours on Monday. Should gold overcome the $1,980 zone in the near term, a stronger bounce could be expected. If the pressure reemerges any time soon, the bullion could see another retreat in the days to come. Gold was last seen changing hands around $1,979, up less than 0.1% on the day. On the weekly timeframes, the bullion stays upbeat, trading in positive territory after last week’s recovery. On the upside, the immediate significant target is now represented by the $1,980 region. On the four-hour charts, the XAUUSD pair is now above the key SMAs while the RSI looks slightly bearish, painting a mixed technical picture.