AUDUSD climbed to June 2018 highs in the 0.7484 zone where the Australian dollar seems to have bumped into resistance
EURUSD has settled marginally below long-term highs registered late last week. On Wednesday, earlier bullish attempts were capped by the 1.2150 local resistance while the initial support arrived at 1.2100. As such, the common currency remains in a consolidative mode after the recent rejection from the highest levels since April 2018. Despite the fact that the euro lacks the upside momentum to extend the rally, downside risks look limited as well. Furthermore, the prices are still well above the ascending 20-DMA, suggesting the pair could regain a more pronounced bullish momentum following the current consolidation.
GBPUSD
GBPUSD bounced from the 20-DMA earlier in the day and climbed to local highs around 1.3460. Despite the pair refrains from challenging the 1.35000 barrier following a limited downside correction, the overall picture for the cable remains upbeat, suggesting the rally could be resumed after some hesitation as the greenback remains on the defensive nearly across the board. However, further dynamics in the pair will depend on the outcome of the last-minute UK-EU talks on the Brexit deal in the short term. If successful, the pair could jump to fresh long-term highs following a recovery above the 1.3500 handle and a break above the previous tops in the 1.3540 area.
USDJPY
USDJPY was unchanged on the day ahead of the opening bell on Wall Street. The trading range is getting tighter, with the 20-DMA continues to cap upside attempts in the pair. In the immediate term, the dollar needs to hold above the 104.00 handle in order to make another bull run at the mentioned moving average, today at 104.22. Otherwise, the pair could retreat to 103.80, followed by the 103.60 key local support. As long as the prices stay above this level, bearish risks surrounding the greenback are limited. On the upside, USDJPY needs to reclaim the 104.75 figure as support in order to regain upside ground.
XAUUSD seems to have faced resistance in the $1,875 area on Tuesday and has shifted into a corrective mode today. Despite the retreat from more than three-week highs, the bullion managed to hold above the $1,850 area and was staying marginally above this level as well as above the 20-DMA that arrives around $1,844. If the precious metal retreats below these support levels, a deeper bearish correction could be expected. In this scenario, the next target would arrive at $1,828, followed by $1,806 where the key support represented by the 200-DMA lies. On the four-hour charts, XAUUSD was flirting with the ascending 20-SMA at the time of writing. A break below this moving average on a daily closing basis could signal the increasing selling pressure.
AUDUSD
AUDUSD regained the upside momentum on Wednesday following a three-day bearish correction. The pair climbed to June 2018 highs in the 0.7484 zone where the Australian dollar seems to have bumped into resistance and retreated marginally. As a result of the latest rally, the daily RSI rose back to the 70 handle and was about to enter the overbought territory at the time of writing. In other words, a decisive break above the 0.7500 barrier looks unlikely in the short term. However, in a wider picture, the Aussie continues to derive support from the ascending 20-DMA for over a month already, and it looks like the prices will continue the ascent after a short-lived retreat to more attractive levels for another bullish wave.
