The USD index stays in a cautious mode, oscillating below the 105.00 psychological figure
EURUSD
The US dollar finished lower on Friday, weighed by weaker-than-expected PCE inflation data. After a brief dip towards local lows around 104.35 ahead of the weekend, the greenback has settled in positive territory on Monday. Still, the dollar struggles to attract more decisive demand, still lacking the upside momentum to challenge the 105.00 level that capped gains earlier in the month. As such, the USD index stays in a cautious mode, oscillating below the psychological figure in anticipation of fresh drivers. The technical outlook has deteriorated over the last couple of days. In recent trading, the dollar was changing hands around 104.66, up 0.02% on the day. Meanwhile, EURUSD failed to make a sustained bounce as dollar demand reemerged. The pair trades above the 1.0800 zone, deciding on further direction. In European trading on Monday, the single currency has settled around 1.0838, shedding 0.03% on the day. On the weekly charts, the broader technical picture remains relatively upbeat despite the recent slide.
GBPUSD
The pound rallied to two-month highs last week before paring gains to finish unchanged on the weekly charts. GBPUSD saw fresh highs around 1.2800 to retreat towards 1,2700 eventually. However, the pair refrained from deeper losses. The cable has settled slightly above the 1.2700 level on Monday, with buyers on the sidelines after the recent slide. As such, the pair stayed around the upper end of the trading range, suggesting the upside bias could persist in the near term. In recent trading, GBPUSD has settled in negative territory, with downside pressure persisting at this stage. In a wider picture, the technical outlook has deteriorated after the latest decline. The daily RSI is now slightly bearish in neutral territory, suggesting potential sellers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2715, down 0.19% on the day. On the flip side, the immediate significant support is now represented by the 1.2700 region, followed by the 1.2680 zone.
USDJPY
USDJPY struggles for direction on Monday after last week’s modest gains. Despite the lack of an upside momentum, the pair stays elevated after recovery from local lows seen around 153.60 earlier in the month. After a dip, the pair jumped back above the 157.00 figure, staying resilient these days. The latest ascent was capped by the 157.80 zone last week that represents the immediate significant upside target for the time being. The pair was last seen changing hands around 157.10, down 0.14% on the day. Now, the greenback needs to hold above the 157.00 region in order to stay afloat and make fresh bullish attempts, with multi-year highs around 160.00 in focus. The daily RSI turned directionless, suggesting the pair could refrain from sustained bullish attempts in the near term. Should the pressure intensify, the dollar may derail the 157.00 intermediate support, but it looks like the pair will resume the ascent after some hesitation.
XAUUSD
Gold prices turned directionless on Monday after finishing unchanged last week. The bullion needs to shrug off a modest bearish pressure to retarget the $2,400 region that represents the intermediate barrier on the way to all-time highs seen around $2,455 last month. Now, the XAUUSD pair needs some momentum to stage a bounce, with prices hesitating to extend the ascent so far. The downside potential looks limited at this stage, however. In recent deals, the XAUUSD pair was changing hands around $2,347, up 0.06% on the day. On the weekly timeframes, the technical picture looks neutral, 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 the mentioned record tops. Downside risks look limited while above the $2,300 region. Should dollar demand reemerge in the near term, the bullion may see another retreat.
