GBPUSD climbed to a fresh 2020 high of 1.3266 earlier in the day but failed to stay elevated and retreated afterward
The dollar remains under a broad-based pressure ahead of the FOMC meeting minutes due later today. However, the event will hardly affect the current bearish trend in the greenback while short-term volatility could pick up in the short term.
EURUSD is flat around 1.1930, trading in a tight range on Wednesday after a five-day winning streak that took the prices to fresh more than two-year highs around 1.1965. Despite the overbought conditions, the common currency refrains from a deeper downside correction, which implies that further gains could be ahead after a pause. On the other hand, the daily RSI is nearly flat above the 70 figure, suggesting the pair may spend some time in a consolidative mode before demand picks up again.
GBPUSD climbed to a fresh 2020 high of 1.3266 earlier in the day but failed to stay elevated and retreated afterward. The pair turned negative on the daily timeframes in recent trading, flirting with the 1.32 support zone, a break below which could trigger more aggressive profit-taking. Anyway, a broader upside trend remains intact, and the prices could resume the ascent following the current correction. The daily RSI reversed south but remained in the overbought territory, suggesting a deeper retreat could be in the cards in the immediate term. If so, the cable may derive the intermediate support around 1.3140. On the upside, the above-mentioned high remains in bulls’ focus.
USDJPY extended losses at the start of the European session, threatening the 105.00 handle. The pair trimmed intraday losses since then but remains below the opening levels, which implies that the dollar could keep bleeding and even plunge to the recent lows marginally above the 104.00 level if the selling pressure surrounding the greenback persists. The FOMC meeting minutes could bring short-term relief for the dollar if the central bank sounds more upbeat on the outlook for the economic recovery. On the upside, the immediate target arrives at 105.60 where the intraday highs lie.
The Kiwi has been recovering from one-month lows for the third consecutive day already. On Wednesday, the pair bounced from the 0.66 handle and climbed to the 0.6650 area last seen nearly two weeks ago. As of writing, NZDUSD was changing hands marginally below the mentioned highs, up 0.67% on the day. If the bullish bias persists in the short term, the prices could make another bull run and target the 0.67 barrier. On the downside, the New Zealand dollar needs to hold above the 50-DMA around 0.6550 in order to avoid a deeper retreat in case of a bearish correction.
Gold prices finished at the $2,000 psychological level yesterday but failed to extend gains and were rejected after two days of gains. Today, the bullion turned negative and has already given up nearly all gains seen on Tuesday. Nevertheless, the broad bullish trend remains intact, and the bullion could resume the ascent after a deeper correction that could attract buyers on dips. The precious metal is 0.77% lower on the day and may get back below the $1,980 area if dollar demand picks up in the short term.