The greenback finished the week unchanged as buyers struggled to push the prices back to the 103.00 level
The US dollar keeps struggling for direction on Monday, trading with a modest bearish bias as risk sentiment looks upbeat in the global financial markets. Last week, the greenback finished unchanged as buyers struggled to push the prices back to the 103.00 level. As such, the USD index came across local resistance to settle below the 102.50 figure eventually, suggesting traders are indecisive at the start of the year. The greenback now 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 slipped marginally in recent trading, EURUSD turned slightly positive on Monday after failed bullish attempts just below the 1.10 mark last week. The pair also stays below the ascending 20-DMA during the early European deals. The euro has settled around 1.0955 after finding support in the 1.0940 area earlier in day. On the upside, the nearest resistance now arrives in the 1.0990 zone, followed by the 1.10 psychological level.
The pound bounced during ahead of the weekend as the dollar attracted renewed some selling pressure. On Monday, the pair retains modest positive bias, with downside momentum looking limited at this stage. The cable thus refrained from a deeper retreat, continuing to derive support from the ascending 20-DMA, today at 1.2710. In early European trading on Monday, the cable looks cautiously upbeat, holding below the 1.2750 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 slightly upbeat in neutral territory, suggesting buyers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2739, down 0.09% on the day. On the flip side, the immediate significant support is now represented by the 1.2700 zone. On the upside, a decisive ascent above 1.2750 would pave the way to a more sustained ascent.
USDJPY turned positive on Monday after a retreat witnessed ahead of the weekend, with the greenback looking mixed in general. Last week, the dollar saw a solid bounce from cyclical lows registered around 140.25 previously. In the process, the pair briefly regained the 146.00 figure before retreating below the 145.00 area. 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 just above the 145.50 region today, holding in positive territory after a two-day slide. 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 145.53, up 0.45% on the day. Now, the greenback needs to decisively break the 145.85 region in order to stage another local rally. The daily RSI turned slightly bullish, suggesting the pair could see another ascent in the immediate term.
Gold prices stay in positive territory since Thursday after a slide witnessed earlier last week, with downside momentum looking limited at this stage. After a dip below the ascending 20-DMA for the first time since mid-December, the XAUUSD pair saw solid bullish attempts. In recent trading, the metal extended gains to $2,055 zone to settle slightly above the 20-DMA in European deals, adding 0.44% on the day. As such, the technical picture has improved slightly, but downside risks continue to persist. Should gold stay below the $2,060 immediate resistance in the near term, some profit-taking could be expected. On the weekly timeframes, the technical picture has improved somehow, while a wider picture remains relatively upbeat after reaching fresh all-time highs last month. On the upside, the immediate significant target is now represented by the $2,062 zone that capped gains late last week. On the flip side, the nearest support lies around $2,045, followed by the ascending 55-DMA, today at $2,013.