Gold makes some recovery attempts as USD struggles for direction
EURUSD
The US dollar trades little changed on Tuesday, holding onto a tightening trading range these days after a brief jump to mid-November highs seen around 104.60 last week. A failed bullish attempt in this area triggered some profit-taking that pushed the USD index back to the 104.00 figure which remains in the market focus. In recent trading, the greenback was trading around 104.16, struggling for direction on the daily timeframes. Despite the recent retreat, the USD index remains relatively resilient, trying to hold above the 104.00 figure, followed by the 104.20 nearest barrier at this stage. Meanwhile, EURUSD continues its recovery attempts after touching the 1.0722 figure for the first time since November last week. As the USD retreated, the euro managed to trim recent losses, trading above the 1.0750 region on Tuesday. Still, the shared currency continues to lack the momentum for exceeding the 100-DMA, today at 1.0786. A decisive break above this moving average would add to recovery impetus. In early European trading, the euro has settled around 1.0773, shedding 0.03% on the day. On the flip side, the nearest support now arrives in the 1.0740 zone.
GBPUSD
The pound keeps advancing north on Tuesday, retaining bullish bias for the third session in a row. The pair continues its recovery from the 1.2520 zone which was reached for the first time since mid-December last week. During the sell-off, the pair derailed the 200-DMA that has turned back into support by now. Earlier in the day, the pair encountered resistance around the 1.2655 zone, holding around the upper end of the extended trading range. In a wider picture, the cable looks neutral now after a slide to local lows around the 1.2500 figure in December. The daily RSI is now bullish in neutral territory, suggesting potential buyers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2647, up 0.18% on the day. On the flip side, the immediate significant support is now represented by the 1.2625 zone. On the upside, a decisive ascent above 1.2655 would pave the way to another local bounce.
USDJPY
USDJPY has been trending mostly higher these days, holding around fresh November highs on Tuesday. The dollar extended gains to 149.67 for the first time since November and was last seen clinging to fresh local tops. Earlier today, the pair briefly dipped to 149.25 to attract renewed demand and thus climbed back to the mentioned highs. Also on the positive side, the prices stay well above both the 100- and 20-DMAs that converged in the 147.55 area last week. In recent trading, the pair has settled around 148.80, clinging to the upper end of the extended trading range. As such, the dollar is now facing the 149.00 barrier. The dollar was last seen changing hands around 149.65, up 0.22% on the day. Now, the greenback needs to decisively break the 150.00 region in order to extend the ascent and refrain from a local correction. The daily RSI is now back upbeat, suggesting the pair could see another bullish attempt after some hesitation.
XAUUSD
Gold prices are shrugging off the pressure on Tuesday after a four-day slide. The precious metal is now holding below both the 20-and the 55-DMAs, staying vulnerable after yesterday’s dip to three-week lows around $2011, with downside potential persisting at this stage. After Monday’s dip towards the mentioned zone, the pair lacks the recovery momentum, with the immediate outlook looking neutral. Following peaking around $2,045 last week, the bullion has settled below the $2,030 region during the European deals on Tuesday, trading 0.30% higher on the day. As such, the technical picture failed to improve substantially, with downside risks persisting while below $2,040. Should gold stay below the 55-DMA, today at $2,033, in the near term, the $2,020 mark may be threatened again. On the weekly timeframes, the technical picture turned more negative, with wider picture staying upbeat after reaching fresh all-time highs in December. On the upside, the immediate significant target is now represented by the $2,045 zone. On the flip side, the nearest support lies around $2,020, followed by the $2,000 psychological level.
