The greenback holds above 101.50, but struggles to attract more decisive buying pressure so far
The US dollar started the year op positive footing as market participants are cautiously awaiting a slew of economic data from the US during the week. The USD index came across the 101.60 local resistance earlier in the day to settle around the flat-line in recent trading, suggesting traders are indecisive during the first trading session of the year. As such, the greenback struggles to attract buyers despite low levels, albeit holding above the 101.00 figure on Tuesday. This level represents the immediate significant support for the time being. In a wider picture, the DXY remains downbeat, pressured by Fed’s dovish intentions. Despite the lack in dollar demand, EURUSD stays pressured on Tuesday, continuing to lose ground after a slide below the 1.1100 figure. The pair slipped to 1.1015 earlier in the session to settle around the lower end of the extended trading range in recent trading. After an earlier rejection from 1.1045, the euro has steadied around the 1.1025 mark that represents the immediate support on the way towards 1.10. On the upside, the nearest resistance now arrives in the 1.1050 zone, followed by 1.1085.
The pound struggles for direction on Tuesday as the dollar trades nearly unchanged in thin trading conditions. The pair sees a slight bullish bias today, with downside momentum looking limited at this stage. The cable thus refrained from a bearish correction as the dollar’s recovery attempt failed earlier. Also on the positive side, the pair stays above the key SMAs. In early European trading on Tuesday, the cable looks modestly upbeat, holding above the 1.2700 figure. In a wider picture, the cable stays bullish now after last month’s slide to local lows around the 1.2500 figure. The daily RSI is directionless in neutral territory, suggesting buyers could stay on the sidelines in the immediate term. In recent trading, GBPUSD was changing hands around 1.2723, unchanged on the day. On the flip side, the immediate significant support is now represented by the 1.2700 zone, followed by the 1.2663 region where the 20-DMA lies. On the upside, a decisive ascent above 1.2760 would pave the way to a more sustained ascent.
The USDJPY pair finished 2023 on negative footing as the greenback stayed pressured across the market. On Tuesday, the dollar bounced from cyclical lows registered around 140.25 last week. In the process, the pair regained the 141.00 figure before finding local resistance in the 141.70 area earlier in the day. After facing the mentioned barrier, the USDJPY pair retreated marginally but retained solid intraday gains. As such, the greenback has settled around 141.50, still struggling to attract more decisive demand. Also, the pair stays well below the 20-DMA, which implies that downside risks still persist for the time being. The dollar was last seen changing hands around 141.48, up 0.44% on the day. Now, the greenback needs to decisively regain the 142.00 region in order to stage another local bounce. The daily RSI has recovered from the 30 mark to regain bullish bias, suggesting the pair could at least stay afloat in the near term. On the hourly timeframes, the technical picture looks neutral, with the RSI directionless while prices are now stuck between the key SMAs.
The price of gold turned positive during the first trading session of the year, holding in the green on Tuesday, albeit the upside momentum looks limited at this stage. After finding support in the form of the ascending 20-DMA in mid-December, the XAUUSD pair bounced and has been trending mostly higher since then. The metal extended gains to $2,088 last week before retreating partially. Today, the prices have settled marginally below the $2,080 zone, adding 0.75% on the day. As such, the technical picture has improved further, with the bullion holding well above the $2,050 zone. Should gold stay above this immediate support 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. On the weekly timeframes, the bullion looks positive, while a wider picture remains relatively upbeat. On the upside, the immediate significant target is now represented by the $2,100 psychological level. On the flip side, the nearest support lies around $2,065 and then in the $2,050 zone, followed by the ascending 20-DMA, today at $2,034.