Profit-taking that pushed the USD index back to the 104.20 zone which remains in the market focus
EURUSD
The US dollar struggles for direction on Monday, holding above the 103.00 figure after peaking at fresh November highs just below the 105.00 figure las week. The greenback trades little changed in early European deals, holding onto a tight intraday trading range as volatility has abated following the recent retreat from the mentioned peaks. A failed bullish attempt in the 105.00 area triggered some profit-taking that pushed the USD index back to the 104.20 zone which remains in the market focus. In recent trading, the greenback was trading around 104.19, down 0.11% on the day. Despite the recent retreat, the USD index remains relatively resilient, holding above the 104.00 figure that represents the nearest significant support at this stage. Meanwhile, EURUSD continues its consolidation below the 1.0800. The shared currency has settled marginally below the 100-DMA, today at 1.0790. A decisive break above the 1.0780 region would add to recovery impetus. In early European trading, the euro has settled around 1.0778, adding just 0.04% on the day. On the flip side, the nearest support now arrives in the 1.0740 zone.
GBPUSD
The pound retains a modest bullish bias at the start of the week, retaining upside bias for the third session in a row. The pair continues its slide from local lows seen around 1.2535 zone last week. During the sell-off, the pair derailed the 200-DMA that has turned back into resistance as a result. Earlier in the day, the pair encountered resistance around the 1.2630 zone, now holding around the lower end of a local trading range. In a wider picture, the cable turned more bullish now after a bounce above the 1.2600 figure. The daily RSI is now upbeat in neutral territory, suggesting potential buyers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2620, up 0.17% on the day. On the flip side, the immediate significant support is now represented by the 1.2600 zone. Earlier, a decisive ascent above the 200-DMA, today at 1.2560, paved the way to a local bounce.
USDJPY
USDJPY turned slightly bearish on Monday, extending its retreat from fresh multi-month highs. Last week, the dollar extended gains to 150.90 for the first time since November before retreating partially amid some profit-taking. In recent trading, the pair dipped below the 150.00 zone, struggling to attract renewed demand at still elevated levels. On the positive side, the prices stay well above both the 100- and 20-DMAs that converged in the 147.55 area earlier in the month. In recent trading, the pair has settled just a few pips below the 150.00 figure, a decisive break below which would add to the selling pressure. On the upside, the dollar is now facing the 150.55 immediate barrier. The dollar was last seen changing hands around 149.94, down 0.18% on the day. Now, the greenback needs to settle above the 150.00 region in order to resume the ascent and refrain from a deeper local correction. The daily RSI is now back downbeat, suggesting the pair could see another bearish attempt after some hesitation.
XAUUSD
Gold prices opened higher today after finishing last week above the $2,000 psychological level. Earlier in the week, the bullion saw a slide towards mid-December lows seen around $1,984. Despite the latest bounce, gold prices remain vulnerable, with downside potential persisting at this stage, albeit the bearish pressure has abated over the last days. After a slide to the mentioned lows, the pair retains the recovery momentum, with the immediate outlook looking neutral. Following peaking around $2,045 earlier in the month, the bullion has settled back above the $2,000 psychological level during the European deals on Monday, trading 0.34% higher on the day. As such, the technical picture has improved somehow, with upside risks persisting while above $2,000. Should gold get below the 100-DMA, today at $1,990, in the near term, a deeper retreat could be expected. On the weekly timeframes, the technical picture turned more upbeat, with wider picture staying neutral 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 $2,005, followed by the $1,995 level.