EURUSD looks directionless at the start of the week after rallying to late-March highs
EURUSD
The US dollar finished unchanged on Friday to lose around 1% for the week in the aftermath of a weaker-than-expected inflation report. During the sell-off, the USD managed to hold above the 104.00 figure to bounce partially by the weekend. The technical outlook has deteriorated after a break below the 105.00 psychological support that has now turned into resistance. On Monday, the greenback looks neutral, struggling to regain the upside bias in early European deals. In recent trading, the dollar was changing hands around 104.50, adding just 0.06% on the day. A daily close below this region would add to short-term bearishness surrounding the buck. Meanwhile, EURUSD looks directionless at the start of the week after rallying to late-March highs just below the 1.0900 figure last week. The pair trades above the 1.0850 zone, deciding on further direction. In European trading on Monday, the single currency has settled around 1.0873, adding 0.03% on the day. On the weekly charts, the technical picture looks upbeat. Now, the pair needs to hold above the 1.0870 zone in order to resume bullish attempts.
GBPUSD
The pound rallied last week due to dollar weakness. GBPUSD came under some pressure on Monday, but still stayed around two-month highs registered last week just above 1.2700. The pair has settled slightly below the psychological level as buyers made a pause after rally. As such, the pair has settled around the upper end of the trading range, suggesting the upside bias could reemerge in the near term. In recent trading, GBPUSD has settled in negative territory, with downside pressure looking limited at this stage. In a wider picture, the technical outlook has improved after the latest ascent. The daily RSI is now slightly 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 1.2696, down 0.02% on the day. On the flip side, the immediate significant support is now represented by the 1.2670 region, followed by the 1.2640 zone.
USDJPY
USDJPY stays slightly positive on Monday after the recent recovery from local lows seen around 153.60 as the US dollar came under pressure across the board. After a dip, the pair jumped back above the 155.00 figure, staying resilient at the start of the week. Earlier on Monday, the ascent was capped by the 156.00 mark that represents the immediate upside target for the time being. The pair was last seen changing hands around 155.76, up 0.07% on the day. Now, the greenback needs to hold above the 155.50 region in order to stay afloat and made fresh bullish attempts, with multi-year highs around 160.00 in focus. The daily RSI stays directionless, suggesting the pair could refrain from decisive moves in the near term. Should the pressure reemerge, the dollar may derail the mentioned support area, followed by the 155.25 intermediate support, but it looks like the pair will resume the ascent after a pause.
XAUUSD
Gold prices extended the ascent at the start of the week to register fresh all-time highs. The bullion shrugged off the pressure to jump to $2,454 for the first time. The XAUUSD pair looks bullish in early European trading, but prices are hesitating to extend the ascent in the near term as the bullion is holding below the mentioned historical highs. The downside potential looks limited at this stage. In recent deals, the XAUUSD pair was changing hands around $2,445, up 1.15% on the day. On the weekly timeframes, the technical picture has improved further, with wider picture remaining upbeat after reaching fresh all-time highs. On the upside, the immediate significant target is now represented by the $2,455 zone, followed by $2,500. Downside risks look limited while above the $2,400 region. Should dollar demand reemerge in the near term, the bullion may give up some of the recent gains.
