EURJPY plunged to three-month lows in the 122.20 area as massive risk aversion pushed the safe-haven yen higher
EURUSD briefly derailed the 1.1720 support area earlier in the day and has trimmed intraday losses marginally since then. Still, the pair remains on the defensive and could threaten the 1.17 handle for the first time in nearly two weeks if the pressure persists. As of writing, the common currency was changing hands around 1.1740, down 0.46% on the day. On the upside, the pair now needs to regain the 20-DMA in order to trim losses further and retarget the 1.18 handle. the daily RSI is pointing downwards in the neutral territory, suggesting further losses could lie ahead before a reversal takes place. A break below the 1.17 mentioned support could bring more pressure down the road if COVID fears continue to drive the safe-haven dollar north.
GBPUSD resumed the decline after a short-lived and shallow recovery seen on Tuesday. The pair dipped to eight-day lows around 1.2916 earlier in the day and bounced afterward. It looks like traders are not ready to send the pound below 1.29 just yet, and a recovery could take place soon if risk aversion abates somehow. On the negative side, the 20-DMA turned into resistance for the first time since late-September. So, now the pair needs to regain this moving average for the short-term technical picture to improve. On the four-hour timeframes, the pound is trying to hold above the 200-SMA, a break below which could pave the way to fresh lows. In this scenario, the initial support now arrives at 1.29, followed by the 100-DMA around 1.2870.
USDJPY bounced from five-week lows registered at 104.11 earlier in the day. Since then, the pair managed to trim intraday losses to 104.35 but remains negative on the day. Now, the dollar needs to overcome the 104.40 figure in order to erase intraday losses and reenter positive territory. The daily RSI is pointing just slightly lower, suggesting further selling pressure could be limited, and the pair may stage a bounce higher down the road. On the hourly charts, USDJPY is flirting with the 20-SMA, a recovery above which would confirm the limited nature of the current retreat.
Gold prices have been pressured by the resurgent USD demand. As the precious metal failed to hold above the $1,900 handle, the prices saw a bearish breakthrough after the recent consolidation. In recent trading, the bullion dipped below the 100-DMA and extended losses to three-week lows around $1,876. The daily RSI is pointing south but remains in neutral territory, suggesting the prices could extend the downward movement and challenge the $1,870 region if the yellow metal fails to settle around the current levels. As of writing, gold was changing hands at $1,880, having trimmed intraday losses partially. Also on the negative side, the prices have broken below the 20-weekly MA for the first time in seven months, which implies that further losses could lie ahead.
The cross plunged to three-month lows in the 122.20 area on Wednesday as massive risk aversion pushed the safe-haven yen higher, putting the high-yielding euro under pressure. Since the start of the week, the pair has dipped below the 20- and 100-DMAs, suggesting further losses could lie ahead. As a result of the recent retreat, the daily RSI has decreased dramatically but is yet to enter the oversold territory, which implies that the downward pressure could persist in the near term. On the four-hour charts, EURJPY is now well below the key moving averages while the RSI continues to point lower despite the oversold conditions. If the pressure persists, the prices could challenge the 122.00 handle in the short term.