Dollar holds steady, refraining from a deeper retreat
EURUSD
The US dollar extended gains to fresh October highs last week before retreating amid profit-taking. After peaking around 106.50, the USD index has settled around 106.00, refraining from a deeper correction despite overbought conditions. The greenback had been rallying aggressively earlier amid safe-haven flows and ebbing Fed rate cut expectations due to stubbornly high inflation. In recent trading, the dollar was changing hands around 106.09, shedding 0.05% on the day. A daily close above the 106.00 zone would bring some short-term bullishness back into the game. Meanwhile, EURUSD bounced from late-October lows seen around 1.0600 last week, but failed to attract more decisive demand. In European trading on Monday, the single currency has settled around 1.0652, losing 0.02% on the day. On the weekly charts, the technical picture still remains bearish after a slide witnessed earlier in the month. Now, the 1.0700 zone represents the immediate significant upside target for the shared currency. In a wider picture, EURUSD looks bearish so far this year.
GBPUSD
The pound extends its retreat, extending its recovery today. Following a brief dip to 1.2350 for the first time since November earlier on Monday, the pair managed to bounce partially, but stayed bearish. Should the cable manage to finish slightly above the 1.2375 region on a daily closing basis, the short-term outlook will improve marginally. In recent trading, GBPUSD has settled in negative territory, trying to attract some demand. In a wider picture, the technical outlook remains bearish as long as the pair holds below the 1.2500 figure. The daily RSI is now bearish in neutral territory, suggesting potential buyers could stay on the sidelines in the immediate term. In recent trading, GBPUSD was changing hands around 1.2361, down 0.08% on the day. On the flip side, the immediate significant support is now represented by the 1.2350 region, followed by the 1.2330 zone.
USDJPY
USDJPY keeps clinging to the upper end of the trading range since mid-March when the dollar bounced from local lows. The pair stays around multi-year highs registered last week in the 154.80 area. The dollar holds steady today, trading just a few pips below the mentioned tops. Earlier last month, 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 marginally below long-term highs, still preserving most of the recent gains. On the upside, the dollar is now facing the 155.00 key barrier. The pair was last seen changing hands around 154.69, up 0.04% on the day. Now, the greenback needs to hold above the 154.50 region in order to extend the ascent. The daily RSI is now neutral, suggesting the pair could refrain from a bearish attempt in the near term. Should the pressure reemerge, the dollar may derail the 154.45 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 around $2,448 earlier in the month before retreating marginally amid overbought conditions. The XAUUSD pair looks bearish in early European trading on Monday, with prices looking ready to extend the retreat in the near term. As such, the downside potential persists at this stage, as investors may continue to take profit more aggressively after the spike. In recent deals, the XAUUSD pair was changing hands around $2,372, down 1.69% 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 $2,400 zone, followed by $2,415. Downside risks are limited while above the $2,300 region. Should dollar demand reemerge in the near term, the bullion may stay below the $2,400 zone that has turned back into resistance after the recent decline.
