The Aussie resumes the ascent due to dollar weakness, having exceeded the 20-DMA in recent trading
EURUSD bounced from the local lows below 1.18 earlier in the day and jumped to 1.1860 in recent trading, having regained yesterday’s losses. As a result, the daily RSI has reversed north in the neutral territory. However, the bullish bias is too modest to bet on stronger gains in the short term as the greenback managed to trim losses recently. In the four-hour timeframes, the common currency has exceeded the 20-SMA, targeting yesterday’s highs around 1.1870. Once above this level, the prices could regain the 1.19 handle but it looks like the euro will struggle to accelerate the ascent in the short term.
GBPUSD is marginally lower on Friday, struggling to regain upside momentum after a rejection from early-September highs around 1.3175 earlier in the week. During the European hours, the pair has settled in the 1.3070 area after failed attempts to recover above 1.31. Despite the current hesitation, the cable could resume the ascent and even challenge the above-mentioned highs if there is some progress in Brexit talks in the short term. Furthermore, the pound is still supported by the key moving averages in the daily timeframes, with the initial support arriving at the 20-DMA, at 1.2960 today. The immediate support zone comes at 1.30. As long as the prices holding above this level, bearish risks are limited.
USDJPY bounced from local lows around 104.55 earlier in the day. As a result, the pair created a long lower wick on the daily charts, suggesting downside risks are limited at this stage despite the dollar coming under the renewed selling pressure nearly across the board. As of writing, the pair was changing hands around 104.75, down just 0.06% on the day. Should investor sentiment continue to improve in the near term, USDJPY may reenter green territory. Anyway, the pair will stay in the red on the weekly charts, being capped by the descending 20-SMA since June. On the downside, the key support arrives at 104.30, a break below this could pave the way toward the 104.00 handle that could cap the potential downside pressure.
Gold prices are marginally higher on Friday, struggling to see a more sustained upside momentum after the recent rejection from this week’s highs above the $1,930 area. On the positive side, the precious metal continues to derive support from the 20-DMA and holding above the $1,900 psychological handle, suggesting the bearish potential is limited as well. It looks like the bullion will extend the current consolidation in the short term before deciding on the further direction. On the weekly timeframes, the yellow metal is in the green territory, deriving support from the 20-SMA since March. Meanwhile, the daily RSI remains flat in the neutral territory, which implies a continuation of the consolidative pattern for the time being.
The Aussie resumes the ascent due to dollar weakness, having exceeded the 20-DMA in recent trading. The pair climbed to nearly one-week highs in the vicinity of the 0.7160 area and has retreated partially since then. Despite the ongoing local rally in the pair, the daily RSI is pointing only slightly higher, suggesting the upside momentum could be waning already. If so, the prices may get back under the mentioned moving average by the end of the trading day and the week. On the weekly charts, AUDUSD is still capped by the 200-SMA that has been acting as a key resistance since September. As of writing, the pair was flirting with the 100-SMA on the four-hour timeframes, a break below which could pave the way to the 0.71 immediate support. As long as the Australian dollar remains above this handle, downside risks are limited.