US retail sales jumped 1.9% on a monthly basis in September following August’s increase of 0.6%
Despite the US retail sales coming in much better than expected, the USD index stayed in the negative territory. Retail sales jumped 1.9% on a monthly basis in September following August’s increase of 0.6% and versus the market expectation of 0.7%. following the report, EURUSD briefly jumped to 1.1745 and has retreated marginally since then. As of writing, the pair was changing hands around the 20-DMA, up 0.24% on the day. On the positive side, the common currency managed to recover above the 1.17 handle while the daily RSI has turned slightly higher. However, it looks like the upside potential is still limited despite the greenback retreats nearly across the board on Friday. On the four-hour charts, the pair is flirting with the 1.1730 area where the 20- and 100-SMAs converge.
GBPUSD encountered the 200-hour SMA earlier in the session and was rejected from local highs as the pair lacked the recovery momentum to overcome the intermediate resistance in the 1.2960 area. Furthermore, the pound slipped back under the 1.29 figure and is now threatening the 20-DMA. If the pressure intensifies any time soon, the prices could challenge the 1.2835 area where the 100-DMA lies. However, so far, it looks like the cable will likely manage to hold above this moving average that has been acting as support since late-June and prevented the pair from a deeper retreat last month. On the weekly timeframes, the pound is nearing the 20-SMA that could act as support as well.
USDJPY is still being capped by the 20-DMA, trading marginally lower on the day after a rejection from intraday highs around 105.40. Earlier in the week, the pair’s bullish attempts were capped by the 105.50 area. As long as the prices stay below this level, downside risks continue to persist while the recovery potential remains limited. On the other hand, the daily RSI is nearly flat and pointing just slightly lower, suggesting the current bearish pressure could be capped around the current levels. In the four-hour charts, the dollar is trying to hold above the 20-SMA after registering intraday lows around 105.20 earlier in the day. The key level to watch on the downside remains at 105.00.
Gold prices look directionless on Friday, with the bullion remaining unchanged ahead of the opening bell on Wall Street. The precious metal has settled marginally above the $1,900 handle after registering four-day highs around $1,914 earlier in the day. If the prices fail to hold around the current levels, the 20-DMA will come back into focus in case of a break below $1,900. In a wider picture, gold prices continue to follow the ascending 100-DMA that has been acting as support since March. Should the metal regain a more sustainable recovery impetus following the current consolidation, October highs in the $1,933 area will come into market focus.
The Kiwi bounced from the 100-DMA once again and turned slightly positive on Friday, licking its wound after a dramatic sell-off seen yesterday. As of writing, the pair was changing hands just at the 0.66 handle, up 0.18% on the day. Despite the resurgent bullish bias, the overall technical picture remains negative, with the New Zealand dollar has yet to reclaim the 20-SMA as support. On the hourly charts, the dynamics looks neutral, with the pair being stuck between the 20- and 200-SMAs while the RSI is directionless in the neutral territory. On the upside, the immediate significant resistance arrives at 0.6655. As long as NZDUSD stays below this figure, downside risks continue to persist.