Gold prices rallied to fresh all-time highs above $2,286, now targeting the $2,300 handle
EURUSD
The US dollar looks steady on Monday, struggling for direction after last week’s gains. Earlier, the greenback was lifted by the recent deterioration in risk sentiment along with relatively hawkish comments from Fed. The dollar climbed to fresh mid-February highs in the 104.75 before retreating partially ahead of the weekend. In recent trading, the dollar was changing hands around 104.53, down 0.02% on the day. A daily close above the 104.50 zone would bring some more short-term bullishness back into the game. Meanwhile, EURUSD has settled around the flatline at the start of the week, with rising the ECB rate cut expectations adding to a cautious tone surrounding the euro. In European trading on Monday, the euro has settled around 1.0785, shedding 0.06% on the day. On the weekly charts, the technical picture turned bearish after a failure to hold above the 1.0800 figure that represents the immediate upside target for the shared currency.
GBPUSD
The pound turned defensive on Monday, staying under some pressure after last week’s modest gains. Following a brief dip to 1.2615, the pair has stays around the lower end of the intraday range, struggling to switch into recovery mode as modest USD demand persists. The cable managed to finish slightly above 1.2600 last week to break below this level earlier in the day amid a steady greenback. In recent trading, GBPUSD stayed in negative territory, struggling to attract renewed demand. In a wider picture, the technical outlook looks neutral as long as the pair oscillates around the 1.2600 figure. The daily RSI is now bearish in neutral territory, suggesting potential sellers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2617, down 0.04% on the day. On the flip side, the immediate significant support is now represented by the 1.2600 figure, followed by the 1.2575 region.
USDJPY
USDJPY holds steady since last week when the dollar briefly registered fresh multi-year highs just a few pips below the 152.00 figure as the yen continued to lose ground despite the Bank of Japan’s decision to raise interest rates last month. On Monday, the pair looks directionless below 151.50. Earlier in March, the pair dipped to the 146.50 zone before attracting strong demand that has been persisting so far. In recent trading, the pair has settled below the mentioned highs, but still preserving most of the gains. On the upside, the dollar is now facing the 152.00 key barrier. The pair was last seen changing hands around 151.36, up 0.01% on the day. Now, the greenback needs to hold above the 151.00 region in order to extend the ascent to fresh tops. The daily RSI is now upbeat, suggesting the pair could refrain from a fresh bearish attempt in the near term. Should the pressure reemerge, the dollar may derail the 151.00 area, but it looks like the path of least resistance remains to the upside so far despite overbought conditions.
XAUUSD
Gold prices rallied to fresh all-time highs above $2,286 earlier on Monday, staying close to the upper end of the extended trading range despite overbought conditions. The XAUUSD pair stays resilient ahead of the European trading, with prices looking ready to extend the ascent in the near term. Still, the downside potential persists at this stage, as investors may take profit more aggressively after the spike. In recent deals, the XAUUSD pair was changing hands just below $2,280 at the time of writing, up 1.86% on the day. On the weekly timeframes, the technical picture stays positive, with wider picture remaining upbeat after reaching fresh all-time highs. On the upside, the immediate significant target is now represented by the $2,300 zone, followed by $2,340. Downside risks are limited while above the $2,200 region. Should dollar demand intensify in the near term, the bullion may threaten the $2,250 support zone.