The price of gold stays relatively upbeat after refreshing all-time highs above the $2,100 level at the start of the week
The US dollar bounce on Monday after finding support just below the 102.50 figure last week. As such, the greenback saw fresh August lows as the overall pressure continued to persist. Since then, however, the USD index shrugged off some of the weakness despite rising expectations for an earlier rate cut by the Fed. After finding support around the mentioned lows, the USD erased losses partially to regain the 103.00 figure. The US currency struggles to attract more decisive buying interest as traders remain cautious after a sell-off. The DXY is oscillating around 103.60 in early European deals on Tuesday, looking modestly downbeat, with risk sentiment mixed in the global financial markets. Against this backdrop, EURUSD continues to retreat from local highs, approaching the 20-DMA for the first time since mid-November. The pair is changing hands around 1.0830 as of writing, down less than 0.1% on the day. In the immediate term, the euro needs to hold above 1.0800 in order to stay afloat and resume the ascent.
The pound finished lower on Monday after peaking at fresh August highs around 1.2730 last week amid persistent 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 on Tuesday, the cable looks directionless, holding just below the 1.2650 figure. As such, the cable stays upbeat 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 bulls could face a barrier in the immediate term. In recent trading, GBPUSD was changing hands around 1.2630, down 0.01% on the day. On the flip side, the immediate significant support is now represented by the 1.2600 zone, followed by the 1.2540 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-November and has been under pressure since then. During the previous session, the dollar saw a brief plunge to fresh mid-September lows around 146.22. Since then, the greenback managed to trim some losses, still staying under pressure on Tuesday. After a brief recovery, the pair slid again to settle marginally below the 147.00 figure that remains in the market focus for the time being. After finding support below this level at the start of the week, the dollar holds in negative territory during the European trading hours today. 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 146.87, down 0.22% on the day. Now, the greenback needs to decisively regain the 147.00 mark in order to stage a local recovery. The daily RSI looks slightly bearish in neutral territory, suggesting the dollar could see persistent downside momentum in the immediate term. On the hourly timeframes, the technical picture looks neutral, with the RSI directionless and prices staying below the key SMAs.
The price of gold stays relatively upbeat after refreshing all-time highs above the $2,100 level at the start of the week. On Monday, the metal briefly derailed this level for the first time to register all-time highs in the $2,134 area before retreating towards the $2,030 region amid profit-taking. As such, the technical picture has improved again, with the bullion holding above the $2,000 figure. Should gold regain the $2,050 immediate barrier in the near term, a stronger ascent 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 $2,033, up 0.48% on the day. On the weekly timeframes, the bullion looks bearish as a result of yesterday’s retreat from all-time tops, while a wider picture looks more upbeat. On the upside, the immediate significant target is now represented by the $2,050 region, followed by the $2,075 zone.