The latest recovery in the dollar was capped by the 102.65 zone that triggered a local retreat below 102.50
After a modest bounce ahead of the weekend, the US dollar came under renewed selling pressure on Monday. The latest recovery was capped by the 102.65 zone that triggered a local retreat below 102.50 at the start of the week. As such, the greenback slid to the 102.40 zone that has been capping the downside so far. After finding support, the dollar stays downbeat in early European deals, struggling to attract buying interest as traders remain cautious. The DXY is still looking bearish as risk sentiment in the global financial markets has improved after a dovish hint from the Fed. Against this backdrop, EURUSD resumed the ascent after Friday’s sell-off to get back above the 1.0900 handle. During the recent retreat, the pair managed to hold above the key SMAs after finding support in the 1.0885 area. The pair is changing hands around 1.0919 as of writing, up 0.22% on the day. The immediate resistance now arrives in the 1.0930 zone that capped the bullish momentum earlier in the day.
The pound finished lower on Friday as dollar demand picked up somehow ahead of the weekend. However, the pair has retained bullish bias today, albeit the momentum looks modest so far. The cable thus refrains from a more decisive bounce at this stage despite dollar weakness, suggesting the pair could resume the decline in the near term. On the positive side, the pair stays above the key SMAs. In early European deals on Monday, the cable looks relatively upbeat, holding above the 1.2650 figure. As such, the cable stays relatively bullish now after the recent slide to local lows around the 1.2500 figure. During the European deals, the pair keeps trying to attract more decisive demand. The daily RSI looks directionless in neutral territory, suggesting buyers could stay on the sidelines in the immediate term. In recent trading, GBPUSD was changing hands around 1.2690, up 0.13% on the day. On the flip side, the immediate significant support is now represented by the 1.2660 zone, followed by the 1.2615 mark where the ascending 20-DMA arrives. On the upside, a decisive ascent above 1.2700 would pave the way to the recent cyclical highs.
After last week’s slide, the USDJPY pair reversed north on Friday and has been on the offensive since then. During the previous session, the dollar encountered resistance represented by the 20-DMA that keeps capping the ascent today. Since then, the greenback extended recovery to the 142.55 figure and was last seen changing hands around the upper end of the intraday range. After finding support lust below 141.00 last week, the dollar tries to attract demand, but the lack of momentum suggests the selling pressure could reemerge in the near term. Also, the pair stays well below the mentioned 20-DMA, which implies that downside risks still persist for the time being. The dollar was last seen changing hands around 142.46, up 0.22% on the day. Now, the greenback needs to decisively regain the 143.00 mark in order to trim losses further. The daily RSI has reentered neutral territory, pointing slightly higher. On the hourly timeframes, the technical picture looks cautiously upbeat, with the RSI pointing north while prices hold above the key SMAs.
The price of gold turned slightly positive on Monday amid a weaker dollar. After finding support in the form of the ascending 20-DMA, the XAUUSD pair bounced marginally. The metal retains bullish bias during the early European deals, trading well above the $2,000 psychological level that turned back into support. As such, the technical picture has improved marginally, but the bullion still holds below the $2,050 zone. Should gold regain this immediate significant 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 $2,023, up 0.13% on the day. On the weekly timeframes, the bullion looks mixed, while a wider picture remains relatively upbeat. On the upside, the immediate significant target is now represented by the $2,048 region, followed by the $2,075 zone.