EURUSD turned downbeat after failed bullish attempts, flirting with the ascending 20-DMA
After the recent ascent, the US dollar came off local highs to turn neutral on Monday as buyers were spooked by the 103.00 level late last week. As such, the USD index came across local resistance during the previous session to settle above the 102.50 figure eventually, suggesting traders were indecisive during the first trading week of the year. As such, the greenback struggles to attract sustained buying interest despite still low levels. The 103.00 level represents the immediate significant barrier for the time being. In a wider picture, the DXY remains downbeat, pressured by Fed’s dovish intentions. As the buck holds steady, EURUSD turned downbeat after failed bullish attempts, flirting with the ascending 20-DMA during the early European deals on Monday. The pair stays above 1.0900 after finding resistance in the 1.10 area in recent trading. After an earlier rejection, the euro has steadied just below the mentioned moving average that represents the immediate resistance on the way towards the 1.10 zone that capped recent gains. On the upside, the nearest resistance now arrives in the 1.0950 zone.
The pound came under pressure on Monday as the dollar turned slightly higher following the recent gains. The pair sees a modest bearish bias today, with downside momentum looking limited at this stage. The cable thus refrained from a deeper bearish correction earlier in the month as the dollar’s recovery was capped by some profit-taking. Also on the positive side, the pair holds above the key SMAs. In early European trading on Monday, the cable looks downbeat, holding below 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 negative in neutral territory, suggesting buyers could stay out of the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2675, down 0.32% on the day. On the flip side, the immediate significant support is now represented by the 1.2650 zone. On the upside, a decisive ascent above 1.2700 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. Last week, the dollar saw a solid bounce from cyclical lows registered around 140.25 previously. In the process, the pair regained the 145.00 figure before finding local resistance in the 146.00 area earlier in the session. After facing the mentioned barrier, the USDJPY pair stayed in the upper end of the extended trading range despite some retreat, suggesting additional gains could be in the cards at this stage. As such, the greenback has settled above 144.00, trying to attract more decisive demand. Also, the pair now holds above the 20-DMA, which implies that downside risks have eased since plunging to the mentioned cyclical lows. The dollar was last seen changing hands around 144.44, unchanged on the day. Now, the greenback needs to decisively break the 145.00 region in order to stage another local rally. The daily RSI extended its recovery from the 30 mark to retain bullish bias, suggesting the pair could at least stay afloat in the near term.
The price of gold turned negative on Monday after two days of gains, holding deeply in red, albeit the downside momentum looks limited at this stage. After a dip below the ascending 20-DMA for the first time since mid-December, the XAUUSD pair stays on the defensive. The metal extended gains to $2,065 zone late last week to settle above the $2,000 level in early European deals on Monday, shedding 0.7% on the day. As such, the technical picture has deteriorated slightly, with the bullion holding below the 20-DMA. Should gold stay below this immediate resistance in the near term, a stronger retreat could be expected. If the pressure intensifies any time soon, the bullion could see another retreat in the days to come. On the weekly timeframes, the technical picture has deteriorated somehow, while a wider picture remains relatively upbeat. On the upside, the immediate significant target is now represented by the $2,050 psychological level. On the flip side, the nearest support lies around $2,025.