The 1.2000 figure is in market focus at this stage, as a break below it would open the way to steeper losses in the euro
EURUSD slipped to fresh two-month lows marginally above the 1.2000 handle earlier in the day while retaining a bearish intraday bias, suggesting another breakdown could be expected in the short term. The 1.2000 figure is in market focus at this stage, as a break below it would open the way to steeper losses in the days to come. On the upside, the immediate resistance now arrives at 1.2050 while a more significant barrier for euro bulls is still represented by the 20-DMA that has been capping gains for three weeks already. As long as the common currency stays below this moving average (today at 1.2133), downside risks continue to persist. On the downside, a break below 1.2000 would pave the way toward the 100-DMA around 1.1955 that has been intact for three months already.
GBPUSD is trading slightly lower on Wednesday after modest gains seen yesterday. In general, the pair stays within a tight trading range marginally below long-term highs registered last week at 1.3758. Today, the cable has settled around 1.3650 following failed attempts to target the 1.3700 figure earlier in the day amid a stronger dollar. In the short-term, the pound will likely stay directionless. In a wider picture, the pair could climb to fresh tops above 1.3760 following the current consolidation. However, the prices could see a deeper downside correction before the bulls reenter the game. The immediate support now arrives at 1.3610. A daily close below the 20-DMA would mark some deterioration in the short-term technical picture.
USDJPY keeps rallying for the sixth day in a row on Wednesday as dollar demand persists. The pair climbed to nearly three-month highs around 105.17 while retaining a bullish tone slightly above the 105.00 handle. The dollar needs to see a daily close above this figure in order to confirm the latest breakout. Otherwise, a bearish correction could take place in the coming days. Now, the technical outlook looks constructive as the greenback has settled above the 20- and 100-DMAs while the 200-daily moving average arrives at 105.60, representing the next key target for dollar bulls.
Gold prices stay under some pressure following yesterday’s dip below $1,830. The bullion has settled in a tight range on Wednesday, struggling for direction, with recovery potential looking limited as long as the prices stay below the 20- and 200-DMAs that converge around $1,850. Furthermore, the daily RSI is pointing slightly lower in the neutral territory, suggesting the precious metal could stay under some downside pressure in the near term. If the prices manage to regain the mentioned moving averages, the 100-DMA will come back into market focus.
The Kiwi keeps mostly positive since a bounce from local lows around 0.7100 seen last week. On Wednesday, the pair has finally exceeded the 20-DMA but is yet to confirm the latest breakout on a daily closing basis as dollar demand persists nearly across the board. The New Zealand dollar was last seen just below the 0.7200 figure as the pair has retreated from one-week highs set around 0.7225 earlier in the session. If the prices fail to regain 0.7200 any time soon, NZDUSD could turn negative on the day eventually. On the four-hour timeframes, the prices are now targeting the key moving averages, a break below which would pave the way to the 0.7150 intermediate support zone.