Should the 1.16 level give up, EURUSD could target the 100-DMA
The euro is the weakest on Friday, trading at two-month lows on Friday after failed bullish attempts below 1.17. As EURUSD remains under pressure, the 1.16 handle is in market focus now, as a break below this level could open the way toward the 100-DMA that arrives under the 1.15 figure. To get rid of the current weakness, the common currency needs to regain the 20-DMA that has been acting as resistance for a week already. On the four-hour timeframes, the euro is being capped by the descending 20-SMA, suggesting the pair will likely remain on the defensive in the short term.
GBPUSD continues to cling to the 100- and 200-DMAs, struggling for direction since Wednesday. The pair turned flat in recent trading after a rejection from the 1.28 level to intraday lows just below 1.27. The daily RSI is directionless as well, suggesting the current consolidation could be extended in the short term. Once above the mentioned moving averages, the pound could regain the 1.28 barrier if the bullish pressure surrounding the dollar eases in the short term. Otherwise, the bears could send the cable to fresh two-month lows. For the time being, it looks like the path of least resistance for the pair is to the downside.
USDJPY keeps rising for the fifth day in a row on Friday. As a result, the pair came close to the 20-DMA that has been acting as resistance since mid-September. Once below this moving average, the dollar could regain the 106.00 handle if USD demand persists in the days to come. However, as the daily RSI looks directionless in the neutral territory, further upside is in question. As of writing, the pair was changing hands around 105.50, up 0.11% on the day. In the hourly charts, the technical picture turned more upbeat after the greenback reclaimed the 20-SMA as support.
Gold prices saw a short-lived and modest recovery on Thursday but failed to challenge the $1,877 intermediate resistance and turned lower again today. The bullion is holding marginally above the 100-DMA that acts as the key immediate support. If this moving average gives up, the bullion will likely target the $1,800 figure for the first time since mid-July. As the daily RSI is nearing the oversold territory, and its bearish bias looks modest, further downside potential could be limited in the short term. In other words, the mentioned SMA could act as support that would trigger a bounce. If so, the immediate upside target should be expected at $1,870, followed by $1,900.
USDCAD regained its bullish momentum on Friday after a brief pause seen yesterday. Bearish correction attempts failed around 1.3325, sending the dollar to the levels close to the 1.34 handle. On Thursday, the pair briefly jumped to early-August highs in the 1.3420 area. In the short term, the prices need to make a decisive break above the 1.34 figure in order to extend the rally from the 20-DMA that regained a bullish bias as well. The daily RSI is flat marginally below the overbought territory, suggesting the upside potential could be limited in the immediate term. On the four-hour charts, USDCAD bounced from the 20-SMA in recent trading and needs to stay above this moving average in order not to lose the current bullish impetus.