The USDJPY pair rallied above the 160.00 figure for the first time in 34 years before erasing all its gains for the day
EURUSD
The US dollar saw solid gains ahead of the weekend as traders were digesting stronger-than-expected US PCE data. In the process, the USD index climbed back above the 106.00 figure to find a local resistance around 106.20. at the start of the week, however, the buck came under renewed selling pressure across the board. In recent trading on Monday, the dollar was changing hands around 105.63, shedding nearly 0.30% on the day. A daily close above the 106.00 zone would bring some short-term bullishness back into the game. Meanwhile, EURUSD extended its bounce from late-October lows, trending higher since mid-April. On Friday, the pair briefly rallied to the 1.0755 zone but failed to preserve gains and finished deeply in negative territory. In European trading on Monday, the single currency has settled around 1.0720, adding 0.27% on the day. On the weekly charts, the technical picture keeps improving gradually after a slide witnessed earlier in the month. Now, the pair needs to hold above the 1.0700 zone in order to stay afloat.
GBPUSD
The pound is back on the offensive after a brief slide witnessed ahead of the weekend. The pair extended its ascent to the 1.2550 figure for the first time since April 12. Following the rally, the pair has retreated partially, but stayed bullish, preserving most of the intraday gains. GBPUSD rallied due to a weaker dollar and some improvement in risk sentiment across the financial markets. Should the cable manage to finish above the 1.2500 region on a daily closing basis, the short-term outlook will improve further. In recent trading, GBPUSD has settled in positive territory, trying to attract more decisive demand. In a wider picture, the technical outlook has improved somehow as well after the pair regained the 1.2500 figure. 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 1.2539, up 0.40% on the day. On the flip side, the immediate significant support is now represented by the 1.2500 region, followed by the 1.2445 zone.
USDJPY
The yen looks volatile in holiday-thinned market conditions. The USDJPY pair rallied above the 160.00 figure for the first time in 34 years before erasing all its gains for the day. After peaking at 160.20, the dollar has retreated below 156.00 amid aggressive profit-taking. As such, the pair has retreated from fresh multi-year highs following a powerful ascent. Earlier in the session, the greenback derived support from the 154.50 area. During the slide, the pair erased most of last week’s gains after seven bullish weeks in a row. On the upside, the dollar is now facing the 156.00 key barrier. The pair was last seen changing hands around 155.73, down 1.65% on the day. Now, the greenback needs to hold above the 155.00 region in order to trim losses further. The daily RSI is now bearish, but the pair could refrain from another sell-off in the near term. Should the pressure reemerge, the dollar may derail the 154.50 area, but it looks like the path of least resistance remains to the upside so far at this stage.
XAUUSD
Gold prices look directionless these days, steadying after a rally to fresh all-time highs around $2,448 earlier in the month before retreating marginally amid overbought conditions. The XAUUSD pair looks slightly bullish in early European trading on Monday, with prices looking ready to extend the bounce in the near term after last week’s brief dip below the $2,300 support zone. As such, the upside potential persists at this stage, but investors may continue to take profit after another potential spike. In recent deals, the XAUUSD pair was changing hands around $2,351, up 0.19% on the day. On the weekly timeframes, the technical picture has deteriorated, with wider picture remaining upbeat after reaching fresh all-time highs. On the upside, the immediate significant target is now represented by the $2,370 zone, followed by $2,400. Downside risks are limited while above the $2,300 region. Should dollar demand reemerge in the near term, the bullion may get back below the $2,350 zone that has been in the market focus these days.
