Currencies hold within tight trading ranges as volatility continues to ebb
EURUSD
The US dollar finished lower last week after six weeks of gains in a row. After a brief climb to the 105.00 area earlier in the month, the USD index has retreated partially amid some profit-taking. The selling pressure surrounding the dollar persists on Monday, with prices holding slightly below the 104.00 handle. The greenback suffers modest losses in early European deals, staying within a tight trading range as volatility has ebbed following the recent retreat from the mentioned peaks that were followed by early-February lows last week. In recent trading, the greenback was changing hands around 103.90, down 0.04% on the day. The 103.80 zone now represents the immediate support after a failure to hold above the 104.00 figure. Meanwhile, EURUSD has settled above 1.0800 today after the recent surge that was capped by the 1.0890 region last week. A decisive break above the 1.0840 region would add to recovery impetus. In early European trading, the euro has settled around 1.0833, adding 0.16% on the day. On the flip side, the nearest support now arrives in the 1.0810 zone.
GBPUSD
The pound struggles for direction on Monday after last week’s gains. The pair remains resilient after the recent break above 1.2650 zone. Following a jump to nearly three-week highs above 1.2700 last week, the cable keeps clinging to the upper end of the extended trading range, trying to attract fresh demand around the 1.2670 figure. During the previous bounce, the pair got back above the 200-DMA that has turned back into support as a result. Earlier in the day, the pair encountered resistance around the 1.2680 zone before retreating marginally. 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 1.2672, down 0.02% on the day. On the flip side, the immediate significant support is now represented by the 1.2650 zone, followed by 1.2630.
USDJPY
USDJPY looks directionless at the start of the week, still holding within a tight trading range after the recent surge to fresh multi-month highs. Earlier in the month, the dollar extended gains to 150.90 for the first time since November before retreating partially amid some profit-taking. Earlier in the day, the pair extended gains to the 150.55 region that remains in the market focus. 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 above the 150.50 figure. On the upside, the dollar is now facing the 150.70 immediate barrier. The dollar was last seen changing hands around 150.53, up 0.01% on the day. Now, the greenback needs to settle above the 150.55 region on a daily closing basis in order to resume the ascent and refrain from a deeper local correction. The daily RSI is now neutral, suggesting the pair could refrain from another bullish attempt in the near term.
XAUUSD
Gold prices little changed on Monday after last week’s gains. Last week, the bullion saw a brief spike towards nearly two-week highs seen around $2,053 before retreating partially. Despite the latest bounce, gold prices remain vulnerable, with downside potential persisting at this stage, albeit the bearish pressure has abated significantly over the last days. After a jump to the mentioned highs, the pair looks relatively steady, with the immediate outlook neutral. Following peaking around $2,050, the bullion has settled around the upper end of the trading range. The XAUUSD pair was changing hands around $2,044 at the time of writing, trading 0.2% lower on the day. Should gold get below the 100-DMA in the near term, a local retreat could be expected. On the weekly timeframes, the technical picture keeps improving, 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 $2,055 zone.