EURGBP threatens the 0.8800 handle as the common currency is trending lower across the board
EURUSD
EURUSD has once again bumped into resistance in the form of the 20-DMA and turned lower on the day. The pair was last seen challenging the 1.2120 area, a break below which would pave the way toward 1.2100. The common currency came under the selling pressure across the board after the ECB’s Knot said the euro strength would take prominence for the central bank if it threatens its inflation outlook. On the four-hour charts, the prices dipped below the 20-SMA in recent trading, clinging to the lower end of the current range while the RSI turned directionless in the neutral territory, suggesting downside risks could be limited in the immediate term.
GBPUSD
GBPUSD climbed to fresh May 2018 highs around 1.3760 earlier in the day. Despite staying in a relatively tight trading range, the cable continues to trend higher even as the greenback looks steady these days. as of writing, the pair was changing hands around 1.3735, unchanged for the day. A daily close above the 1.3700 handle would be a confirmation of the latest breakout and could pave the way towards the 1.3800 figure last seen in April 2018. The immediate support is represented by 1.3700, followed by the 20-DMA that arrives around 1.3640. as long as the pound stays above this moving average, upside risks persist in the short term.
USDJPY
USDJPY has already erased yesterday’s losses following a bounce from the 20-DMA, today at 103.60. The pair encountered resistance in the 103.80 area and was clinging to the upper end of the intraday range at the time of writing. Despite the recovery, the current bounce looks indecisive and fragile as the upside potential remains limited. On the hourly timeframes, however, the greenback has exceeded the key moving averages in recent trading. On the negative side, the hourly RSI reversed south, suggesting the prices could retreat from the mentioned highs by the end of the day. In this scenario, the immediate support should be expected at the mentioned 20-DMA.
XAUUSD
Gold prices extend the decline for the fifth day in a row on Wednesday, challenging the 200-DMA, a break below which could pave the way to further losses in the short term. the precious metal was last seen at $1,846 where the mentioned moving average arrives. Should the XAUUSD pair fails to hold above the $1,840 area in the short term, a deeper retreat toward $1,832 could be expected. In a wider picture, the upside potential in the bullion is still capped by the 20-weekly moving average, today at $1,876. As long as the prices stay below this barrier, bearish risks persist in the medium term. On the positive side, both the daily and the weekly RSIs looks neutral, suggesting the metal could refrain from a more aggressive retreat at this stage.
EURGBP
The cross extended its decline to fresh May 2020 lows on Wednesday. The pair dipped to the 0.8825 area, now threatening the 0.8800 handle as the euro is trending lower across the board. The prices were rejected from the levels above 0.8900 last week and have been retreating since then. As a result, the daily RSI turned lower, nearing the 30 figure today. Still, the index is yet to enter the oversold territory, suggesting there is further room to the downside in the short term. If the pair fails to stage a bounce from the mentioned lows and gets below the 0.8800 level, the next support should be expected at 0.8725. Of note, the cross was last seen flirting with the 100- and 200-SMAs in the daily charts. These moving averages could cap the current selling pressure.
