USDJPY plunged below 105.00 for the first time since early-October, extending losses to 104.60
EURUSD accelerated the ascent and jumped to one-month highs on Wednesday. The pair has encountered local resistance around 1.1780 earlier in Europe and has retreated partially since then. Still, the pair retains a strong bullish bias, holding in the 1.1850 area, up 0.32% on the day. The euro is driven higher by broad-based weakness in the greenback that persists despite the resurgent risk aversion in the global financial markets. If the common currency confirms the latest breakout on a daily closing basis, the 1.20 handle will come back into market focus. Once above the mentioned highs, the pair could challenge the 1.19 figure next. The daily RSI is pointing north but is yet to enter the overbought territory, suggesting a bullish continuation could be expected in the short term.
GBPUSD rose to September 8 highs on Wednesday, fueled by a combination of positive Brexit-related headlines and a weaker dollar. As a result, the pair got back above the 1.30 handle and stopped just below the 1.31 figure that now acts as the immediate barrier for sterling bulls. The fact that the cable saw a strong bounce from the 20-DMA and turned 1.30 back into support implies that further gains could lie ahead. However, in shorter-term timeframes, the RSI has already exceeded the 70 mark which is a sign of overbought conditions that could result in a downward correction. If so, the pair needs to hold above 1.30 to avoid more aggressive profit-taking and resume the ascent after a pause.
USDJPY plunged below 105.00 for the first time since early-October, extending losses to one-month lows in the 104.60 area. As the 104.80 intermediate support gave up, further losses could be expected in the near term, with the greenback staying under pressure across the board. The technical picture on the daily charts has deteriorated since the RSI has abruptly switched from a neutral stance and is now pointing strongly south. Furthermore, USDJPY is back below the 20-DMA that triggered the sell-off and could further cap bullish attempts after a reversal. At the same time, there are some signs of finding a bottom in the four-hour charts, suggesting the dollar could hold above 104.40. Otherwise, the 104.00 handle will come into play.
Gold prices have accelerated the recovery amid dollar weakness and risk aversion in stock markets. The bullion climbed to nine-day highs around $1,926, preserving the bullish bias ahead of the opening bell on Wall Street. However, the precious metal needs to overcome the $1,933 intermediate resistance to confirm the current bullish bias. As long as the prices stay below this level, the upside momentum looks too modest and fragile to bet on more robust gains in the short term. of note, the daily RSI is also pointing to sluggish upside momentum. On the downside, the key immediate support still arrives at 20-DMA that lies marginally below the $1,900 handle.
USDCHF plunged to early-September lows in the 0.9030 area earlier in the day. Since then, the pair managed to trim intraday losses partially, being down 0.21% on the day. It looks like the pair has found a local bottom and could proceed to a more robust recovery in the short term. In this scenario, the initial upside target is expected at 0.9070, followed by 0.91. Otherwise, the dollar could retest the 0.90 handle for the first time since early-September, but such a development looks unlikely for the time being. On the four hour charts, the RSI is recovering from the oversold territory, suggesting a more robust upside correction could be expected.