USD looks modestly upbeat, with risk sentiment mixed in the global financial markets
The US dollar bounce slightly on Tuesday after finding support just above the 103.00 figure earlier in the day. As such, the greenback saw fresh late-August lows as the overall pressure continues to persist. As such, the USD index struggles to shrug this month’s selling pressure amid rising expectations for an earlier rate cut by the Fed. After finding support around the mentioned lows, the USD erased intraday losses, staying on the defensive, however. The US currency struggles to attract more decisive buying interest as traders remain cautious after a sell-off. The DXY is oscillating around 103.20 in early European deals, looking modestly upbeat, with risk sentiment mixed in the global financial markets. Against this backdrop, EURUSD came off local highs to turn slightly negative today after an earlier ascent to the 1.0960 zone that capped gains. The pair is changing hands around 1.0946 as of writing, down less than 0.1% on the day. In the immediate term, the euro needs to hold above 1.0935 in order to resume the ascent.
The pound turned directionless on Tuesday after peaking at fresh August highs around 1.2644 during the previous session amid persisting weakness surrounding the USD. However, the pair refrains from any major correction despite slightly overbought conditions, suggesting the cable could resume the ascent after a pause. Also, the pair stays well above the key SMAs that capped losses earlier. In early European deals, the cable has settled in negative territory, holding above the 1.2600 figure. As such, the cable turned slightly downbeat now after the recent ascent to fresh multi-month highs. During the European deals, the pair keeps trying to attract renewed demand. The daily RSI looks directional in neutral territory, suggesting the pair could see more upside attempts in the immediate term. In recent trading, GBPUSD was changing hands around 1.2620, down 0.04% on the day. On the flip side, the immediate significant support is now represented by the 1.2600 zone, followed by the 1.2575 intermediate barrier on the way towards 1.2500. On the upside, a decisive ascent above 1.2650 would pave the way to fresh cyclical tops.
The USDJPY pair reversed south in mid-month and has been under pressure since then. Last week, the dollar saw a brief plunge to mid-September lows around 147.15. However, the greenback managed to trim losses before losing the upside momentum around 149.70. After a brief recovery, the pair slid again to settle above the 148.00 figure that remains in the market focus for the time being. After finding support just below this level earlier in the day, the dollar holds in negative territory during the European trading hours Tuesday. 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 148.43, down 0.15% on the day. Now, the greenback needs to decisively regain the 149.00 mark in order to resume the ascent. The daily RSI looks bearish in neutral territory, suggesting the dollar could see some downside momentum in the immediate term. On the hourly timeframes, the technical picture looks neutral, with the RSI pointing north and prices staying below the key SMAs.
The price of gold stays bullish, refreshing cyclical highs above the $2,000 psychological level this week. Earlier, the metal regained the directionless 20-DMA that turned back into support. As such, the technical picture has improved again, with the bullion back above the $2,000 figure. After last week’s brief dip to the $1,965 zone, the XAUUSD bounced back above the two key hurdles represented by the 20-DMA and the $2,000 mark, staying upbeat during the European hours on Tuesday. Should gold overcome the $2,018 immediate barrier in the near term, a stronger rally 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 $2,015, up 0.15% on the day. On the weekly timeframes, the bullion stays upbeat, trading in positive territory for the third week in a row. On the upside, the immediate significant target is now represented by the $2,020 region that has been capping the ascent this week.