If the common currency continues to regain ground, the prices could challenge the 1.1770 region
EURUSD bounced from late-July lows registered at 1.16 earlier in the day and turned positive during the European hours as the greenback has pared gains across the board, with trading remains volatile as traders digest the tense US election rhetoric. The pair climbed to the 1.1745 area in recent trading but refrained from challenging the 20-DMA. The long lower wick created in the daily timeframes suggests the downside potential in the euro is limited at this stage, with volatility remaining elevated as markets await the outcome of the crucial US presidential election. If the common currency continues to regain ground, the prices could challenge the 1.1770 region that capped bullish attempts at the start of the day. On the downside, the nearest intermediate support now arrives at 1.1715.
GBPUSD also managed to erase earlier losses and turned flat on the day after a brief dip to the 1.2915 area in late Asian trading. Now, the cable needs to confirm a recovery above the 20-DMA on a daily closing basis in order to extend the recovery. At the start of the day, the pair climbed to nearly two-week highs around 1.3140 but failed to preserve the bullish momentum as dollar demand picked up in Europe. As of writing, the cable was changing hands around 1.3030, with the 1.30 mark representing the immediate support. If the prices manage to hold above this significant level, the short-term technical picture could improve further. Otherwise, the above-mentioned lows will come back into market focus. On the four-hour charts, GBPUSD has settled above the key moving averages, which is a positive short-term sign.
USDJPY rallied to the 105.34 area during the Asian hours but was rejected strongly from October 21 highs and plunged to 104.14 as a result and trimmed losses marginally in recent trading. The pair remains on the defensive while the daily RSI is pointing south while staying in the neutral territory, suggesting the downside potential is not exhausted yet while the bullish momentum looks limited despite a short-term rally seen earlier in the day. On the negative side, the greenback still struggles to regain the 20-DMA that arrives just below the 105.00 handle today. The longer the prices stay below this moving average, the higher the downside risks are getting.
Gold prices erased earlier losses and regained the $1,900 handle ahead of the opening bell on Wall Street as dollar demand has waned. The precious metal turned flat on the day, having settled above the 20-DMA. However, the bullion is yet to confirm the latest recovery on a daily closing basis as the upside potential still looks limited despite the dollar coming under some pressure after a short-lived ascent seen at the start of the day. In a wider picture, the dynamics remains neutral as long as the yellow metal stays below the $1,933 region. Once above this significant hurdle, the prices could target the $1,975 resistance for the first time since mid-September. In the immediate term, XAUUSD needs to hold above the 20- and 100-DMAs in order to continue recovery attempts.
USDCHF was rejected from the levels just below 0.92 earlier in the day and plunged below 0.91. As of writing, the pair was changing hands just at 0.91, still lower on the day. As a result of a strong rejection, a long upper wick was created on the daily timeframes, suggesting the bullish potential is still limited. On the upside, the key hurdle for bulls is represented by the descending 100-DMA that arrives just above the 0.92 figure. If the prices fail to cling to the current levels, the local lows around 0.9030 will come back into market focus for the first time since early last week. On the four-hour charts, USDCHF dipped below the key moving averages, which is a bearish short-term sign.