The euro managed to quickly recover above the 1.1900 figure and could climb to fresh tops in the days to come
EURUSD retains a bullish bias above 1.1900 but struggles to see a more robust ascent, staying below two-month highs registered around 1.1940 yesterday. The fact that the common currency managed to quickly recover above the 1.1900 figure may signal its readiness to climb to fresh tops in the days to come. The daily RSI continues to point upwards but is yet to enter the overbought territory, suggesting there is room for further upside potential. Once above the mentioned highs last seen in early-September, the pair could target the 1.1960 area. On the downside, a break below 1.1900 would pave the way towards the 1.1880 local support, followed by 1.1860.
GBPUSD turned lower for the day following another rejection from the 1.3400 figure. Still, the pair managed to hold above the 1.3300 level and trimmed some intraday losses in recent trading. It looks like a double top was created around the mentioned highs, suggesting the prices could need the additional catalyst to make a decisive break above this level. In other words, a downside correction could take place in the short term, bringing the cable below 1.3300. Of note, the daily RSI has nearly reached the overbought territory and reversed lower recently, which implies that the pound could see a deeper retreat that will bring the ascending 20-DMA back into market focus. In a positive scenario, GBPUSD could retarget 1.3460 once the 1.3400 figure turns into support.
USDJPY failed to regain the 20-DMA earlier this week and briefly slipped below 104.00 on Friday. The pair managed to trim intraday losses since then but stays in the red territory as the overall dollar demand remains weak in subdued trading ahead of the weekend. As of writing, USDJPY was changing hands around 104.17, down 0.08% on the day. If the greenback continues to erase losses, a break above 104.25 would pave the way towards the mentioned moving average, today at 104.40. Downside risks could recede if this MA turns into support for the first time in two weeks. On the four-hour charts, the technical picture would improve on a recovery above the 20- and 100-SMAs around 104.30-104.35.
Gold prices derailed the $1,800 figure for the first time since mid-July on Friday. The technical picture has deteriorated further after a major breakdown, with the precious metal struggling despite dollar weakness and more subdued demand for risky assets. As a result, the commodity retreated below $1,1790 and it looks like the prices are ready for further weakness in the short term. On the four-hour timeframes, the bullion was strongly rejected from the descending 20-SMA, adding to a bearish technical outlook. Once below $1,780, XAUUSD could target the $1,760 region for the first time since early-July. On the upside, the immediate significant resistance now arrives at the $1,800 level strengthened by the 200-DMA, followed by the $1,820 area.
USDCHF bounced from local lows in the 0.9055 area and erased yesterday’s losses despite a generally weak dollar on Friday. The pair climbed back to intraday highs around 0.9080 but has retreated to 0.9067 since then. It looks like a double bottom was created in the intraday charts, which implies that the bearish pressure could be limited, and a more sustainable recovery may be expected in the short term. On the upside, a break above the 0.9100 handle and the 20-DMA would improve the short-term technical picture and pave the way towards the 0.9140 resistance, marginally above which the 100-DMA arrives.