The greenback turned defensive amid some profit-taking, with risk sentiment remaining upbeat in the global financial markets
After peaking around 103.70 last week, the US dollar has been losing the upside momentum gradually to come under solid selling pressure on Tuesday. The greenback turned defensive amid some profit-taking, with risk sentiment remaining upbeat in the global financial markets. As Treasury yields retreated after a jump, the USD failed to hold onto gains as well. As such, the USD index came across local resistance to briefly derail the 103.00 psychological level earlier in the day before trimming some losses in recent trading. The 103.00 figure represents the immediate significant support for the time being. In a wider picture, the DXY remains relatively upbeat as Fed rate cut odds continue to decline. As the buck retreated from local peaks, EURUSD continues its modest recovery attempts after finding support around 1.0845 where the directionless 200-DMA lies. The pair keeps flirting with the ascending 55-DMA, trying to stay afloat after the recent plunge. The euro has settled around 1.0887, up less than 0.1% on the day. On the upside, the nearest resistance now arrives in the 1.0900 zone, followed by the 1.0930 region.
The pound keeps advancing north after finding support around one-month lows just below the 1.2600 figure last week. As the dollar attracted some selling pressure, the pair retained positive bias, with downside momentum looking limited at this stage. The cable thus recovered after the recent retreat to settle back above the 20-DMA, today at 1.2712. In early European trading on Tuesday, the cable looks 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 slightly upbeat in neutral territory, suggesting buyers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2725, up 0.15% 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 stays downbeat on Tuesday after peaking at fresh November highs around 148.80 last week. Earlier in the day, the pair failed to overcome the 148.55 zone, accelerating the decline as the Japanese yen surged across the board in the aftermath of the Bank of Japan policy meeting. As such, the dollar briefly derailed the 147.00 figure before bouncing back to the 100-DMA, today at 147.50. In recent trading, the pair was holding just above the mentioned SMA, still staying negative on the day. After facing the 148.55 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 after a pause. Also, the pair now holds above the 100-DMA, which implies that downside risks have eased since plunging to cyclical lows in late December. The dollar was last seen changing hands around 147.53, down 0.37% on the day. Now, the greenback needs to decisively break the 148.00 region in order to stage another local rally. The daily RSI turned slightly bearish, suggesting the pair could refrain from another ascent in the immediate term.
Gold prices bounced marginally on Tuesday after a slide witnessed amid the rallying dollar, with downside momentum looking limited at this stage. After last week’s dip, the pair stays below the 20-DMA that has been capping the upside momentum these days. At the start of the week, the metal extended losses to $2,016 to settle around the $2,030 figure in European deals today, adding 0.38% on the day. As such, the technical picture has improved somehow, but downside risks continue to persist while below the mentioned 20-DMA. Should gold stay below the $2,030 immediate resistance in the near term, the $2,000 mark may be threatened. On the weekly timeframes, the technical picture stays relatively downbeat, while a wider picture remains positive after reaching fresh all-time highs last month. On the upside, the immediate significant target is now represented by the $2,040 zone where the 20-DMA lies. On the flip side, the nearest support lies around $2,020.