If the euro manages to regain upside bias and regain the 1.1900 figure, the 1.1930 resistance will likely cap further bullish attempts
The US dollar managed to reverse early losses and turned nearly unchanged on the day as risk-on sentiment started to wane across the financial markets. As such, EURUSD came off highs in the 1.1930 area, staying below the 1.1900 handle ahead of the opening bell on Wall Street. A daily close below this level would be a sign of the deteriorating technical picture in the short term. On a wider picture, however, the common currency stays bullish as long as the prices remain above the ascending 20-DMA. On the upside, if the euro manages to regain upside bias and regain the 1.1900 figure, the 1.1930 resistance will likely cap further bullish attempts, as the pair could need the additional catalyst to overcome this barrier.
GBPUSD turned red on the day on Wednesday after a three-day winning streak. The pair came across a 1.3400 resistance earlier this week and has been struggling to show a sustained upside momentum since then. As of writing, the cable was changing hands around 1.3335, down 0.14% on the day while deriving support from the 1.3300 figure. If this level gives up in the short-term, the selling pressure could intensify and send the prices to the 1.3270 area. On the four-hour charts, GBPUSD is flirting with the ascending 20-SMA, a break below which could trigger a more pronounced retreat. On the other hand, as the RSI looks neutral both in the short-term and daily timeframes, the bearish potential looks limited as well.
USDJPY has been following the 20-SMA since the start of the day, trading unchanged after a rejection from intraday tops in the 104.60 region earlier in the day. On the downside, the immediate support arrives at 104.35, followed by the 104.15 figure. As long as the greenback stays above the 104.00 figure, the current bias remains neutral while downside risks are limited. If the greenback regains the upside bias any time soon, a decisive break above 105.00 would be essential for targeting the 100-DMA that continues to act as the key resistance last seen four months ago. On the four-hour charts, the pair was flirting with the 100-SMA at the time of writing while holding above the 20-SMA for the last two days.
XAUUSD dipped to the 200-DMA in a recent sell-off and thus has neared a critical point as the moving average has been acting as support since March. As risk sentiment has deteriorated somewhat in recent trading, the bullion turned marginally higher on the day ahead of the opening bell on Wall Street. As of writing, the precious metal was changing hands around $1,815, off intraday lows in the $1,800 region. In the short term, the bullion needs to hold above this level in order to avoid a break under the mentioned moving average. If this MA gives up, the selling pressure could intensify which would trigger a significant deterioration of the medium-term technical picture. On the other hand, this support may fuel a strong bounce, with the initial target coming at $1,845.
The Kiwi rallied to mid-2018 highs in the 0.7000 area yesterday and retains a bullish bias on Wednesday despite a recovery in the greenback. Still, the pair remains shy of this psychological handle that could trigger a bearish correction amid the overbought conditions. As of writing, NZDUSD was changing hands around 0.6984, up just 0.08% on the day. If the prices struggle to derail the mentioned top any time soon, a retreat towards the 0.6950 initial target could be expected. On the other hand, downside risks look limited as long as the Kiwi remains above the ascending 20-SMA on the four-hour timeframes. If the 0.7000 turns into resistance, the 0.7060 region will come into market focus next.