The euro climbed to mid-September highs in the 1.1885 area that has capped the ascent toward 1.19
EURUSD keeps rising on Friday as the dollar remains on the defensive across the board despite the prevailing risk-off tone. The pair climbed to mid-September highs in the 1.1885 area that has capped the ascent toward the 1.19 barrier. The daily RSI is pointing north and hasn’t entered the overbought territory just yet, suggesting more gains could be ahead for the pair in the short term. If the euro fails to turn the mentioned highs into support on a daily closing basis, a downside correction could be expected. On the downside, the immediate support now arrives at 1.1830, followed by 1.18. On the four-hour charts, the RSI has entered the overbought territory, suggesting further upside could be limited in the immediate term.
GBPUSD climbed to October 21 highs in the 1.3155 area earlier in the session but failed to preserve upside momentum and turned negative on the day. However, the bearish impetus looks limited as well. Suggesting the pair could spend some time in a consolidative mode before deciding on further direction. If the selling pressure intensifies any time soon, the immediate support should be expected at 1.31. The cable needs to stay above this level in order to resume the ascent and regain the 1.32 barrier for the first time since early-September. At this stage, it looks like the pound is not ready for more sustained gains, with the key moving averages looking directionless and the daily RSI pointing south.
USDJPY plunged to 103.17 for the first time since March, retaining a bullish tone after a massive sell-off seen on Thursday. If the dollar fails to derive support from the current levels, the 103.00 handle could turn into resistance and pave the way to fresh losses. However, it looks like the prices will manage to hold above 103.00 and could eventually stage a bounce amid the oversold conditions. On the hourly charts, the pair continues to follow the descending 20-SMA since Wednesday. The greenback needs to regain this moving average in order to shift into a recovery mode and regain the key 20-DMA, today at 104.90. As of writing, the pair was changing hands around 103.30, slightly off the mentioned lows. The immediate resistance now arrives at 103.50, followed by 103.75 and 104.00.
Gold prices extend the local rally, finishing the week with decent gains amid dollar weakness. The precious metal that has firmly regained the key $1,900 handle climbed to mid-September highs around $1.958. As the daily RSI is pointing north in the neutral territory, further gains could be expected in the short term. On the other hand, the $1.680 area could act as resistance and trigger a partial downside correction if the selling pressure surrounding the dollar eases any time soon. On the four-hour charts, the RSI has entered the overbought territory, suggesting a retreat could take place in the immediate term.
The Kiwi rallies to April 2019 highs around 0.68 and has retreated partially since then. It looks like the pair will likely refrain from challenging this barrier in the short term despite the daily RSI hasn’t reached the overbought levels just yet. On the four-hour charts, the technical picture looks upbeat while on the hourly timeframes, the prices are flirting with the 20-SMA that will likely turn back into resistance in the immediate term. If so, the immediate support should be expected at 0.6750, followed by the 0.6726 level. In a wider picture, the prices need to stay above the 20-DMA in order to retain the upside impetus.