The euro dipped to the 1.0755 zone amid some revival of demand surrounding the dollar
EURUSD
The US dollar finished unchanged overnight as trading activity was muted after the weekend. The USD index briefly dipped to a local low of 104.87 before bouncing back to the flat-line. On Tuesday, the greenback keeps oscillating in a tight trading range, retaining a modest upside bias in early European deals after finding a local resistance around 105.30 earlier today. In recent trading, the dollar was changing hands around 105.21, adding 0.15% on the day. A daily close above 105.30 would bring some short-term bullishness into the game. Meanwhile, EURUSD came under some pressure on Tuesday after the recent gains. The pair briefly dipped to the 1.0755 zone amid some revival of demand surrounding the dollar. In European trading on Tuesday, the single currency has settled around 1.0758, shedding 0.05% on the day. On the weekly charts, the technical picture keeps improving gradually. Now, the pair needs to hold above the 1.0700 zone in order to stay afloat.
GBPUSD
The pound is back on the defensive after a brief rally witnessed at the start of the week. The pair extended its ascent to the 1.2595 figure before reversing gains. Following the rally, the pair has retreated to turn unchanged on the weekly timeframes. GBPUSD slipped due to a stronger dollar and some deterioration in risk sentiment across the financial markets. However, should the cable manage to finish above the 1.2530 region on a daily closing basis, the short-term outlook will stay neutral. In recent trading, GBPUSD has settled in negative territory, struggling to attract demand. In a wider picture, the technical outlook has deteriorated somehow after the pair settled below the 1.2600 figure. The daily RSI is now bearish in neutral territory, suggesting potential buyers could stay out of the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2537, down 0.18% on the day. On the flip side, the immediate significant support is now represented by the 1.2530 region, followed by the 1.2500 mark.
USDJPY
The Japanese yen is back under pressure, with USDJPY adding to gains for the third session in a row. In late-April, the pair rallied above the 160.00 figure for the first time in 34 years before erasing all its gains. However, after a brief slide below 152.00, the greenback bounced to regain the 154.00 mark. As such, the pair preserves the upside bias on Tuesday. Earlier in the session, the greenback derived support from the 153.88 area to turn positive on the day. During the bounce, the pair has partially reversed previous losses to turn bullish for the week. On the upside, the dollar is now facing the 155.00 key immediate barrier. The pair was last seen changing hands around 154.53, up 0.41% on the day. Now, the greenback needs to hold above the 154.00 region in order to retain bullishness. The daily RSI is now bullish, suggesting the pair could refrain from another sell-off in the near term. Should the pressure reemerge, the dollar may derail the mentioned support area, but it looks like the path of least resistance remains to the upside so far at this stage.
XAUUSD
Gold prices failed to extend yesterday’s ascent to come under renewed pressure after a local rally that was capped by the $2,340 region at the start of the week. The XAUUSD pair looks slightly bearish in early European trading on Tuesday, but prices are hesitating to extend the retreat in the near term as the bullion is holding above the $2,320 support zone so far. As such, the downside potential persists but looks limited at this stage. In recent deals, the XAUUSD pair was changing hands around $2,323, down 0.34% on the day. On the weekly timeframes, the technical picture has improved somewhat, with wider picture remaining upbeat after reaching fresh all-time highs a month ago. On the upside, the immediate significant target is now represented by the $2,340 zone, followed by $2,360. Downside risks look limited while above the $2,300 region. Should dollar intensify in the near term, the bullion may get back below this zone to refresh local lows.
