$1,900 is the key level to watch in the gold market
EURUSD is back in the green on Thursday as dollar demand weakened again. The pair has climbed to the 20-DMA that arrives in the 1.1770 region. A break above this moving average will pave the way toward the 1.18 barrier. However, the common currency may lack the upside impetus to challenge this resistance in the short term as the pair is yet to make a decisive break above the mentioned moving average that could deter bulls. In a wider picture, the euro remains not far from two-year highs around 1.20 and could stage a more robust ascent after a possible deeper correction. On the four-hour timeframes, EURUSD is flirting with the 100-SMA that could trigger a retreat in the immediate term.
GBPUSD extends its gradual ascent from a strong support zone where the 100- and 200-DMAs converge. The pair climbed to September 18 highs in the 1.2975 area in recent trading and looks set for a re-test of the 1.30 psychological level if the pound manages to preserve its bullish bias in the short term. Should the pair be rejected from the current levels, the immediate support is expected at 1.2895 where the 20-DMA arrives. On the hourly charts, the prices jumped aggressively over the past hour but it looks like the momentum is unsustainable, so a downside correction could be expected in the immediate term. On the other hand, the daily RSI is pointing north, suggesting the pair could extend the pullback after a short-term retreat.
USDJPY has been flirting with the 20-SMA for a week already, struggling for direction amid conflicting signals. The pair turned flat in recent trading, after a rejection from intraday highs around 105.60. As the dollar continues to encounter the selling interest on bullish attempts, downside risks continue to persist despite the recent bounce from long-term lows around 104.00. On the four-hour timeframes, the dollar got back below the 20-SMA and could threaten the 105.40 area where the 100-SMA (105.40) lies. Once below this level, the pair could suffer deeper losses in the short term and challenge the 105.00 handle for the first time since September 23.
Gold prices turned positive after the recent bearish correction but still struggle to stage a more robust ascent. On the downside, the precious metal has been supported by the 100-DMA while a significant obstacle for bulls is represented by the 20-DMA, at $1,921 today. As of writing, the bullion was flirting with the $1,900 psychological level which is the key to watch for bulls. A decisive break above this figure is needed for a more sustainable recovery. Until then, the short-term dynamics in the XAUUSD pair is considered neutral. On the weekly charts, there is a clear bearish slope, with prices barely holding above the key 20-SMA. Once below this moving average that arrives at $1,855, downside risks will intensify substantially.
The Kiwi has been rallying for the fifth day in a row on Thursday. As of writing, the pair was changing hands at the 20-DMA that has been acting as resistance since September 21st. This moving average that arrives around 0.6650 is the key level to watch in the immediate term as a daily close above this level would be a confirmation of the latest breakout and could pave the way to further gains in the short term. The daily RSI continues to point north in the neutral territory, suggesting the bullish impetus hasn’t been exhausted yet. Once above the mentioned moving average, the New Zealand dollar will likely target the 0.67 strong resistance that could cap the current rally.