Despite the retreat, the euro stays firmly above the 1.2100 handle that acts as the immediate support
EURUSD climbed to January 29 highs around 1.2145 earlier on Wednesday before trimming some intraday gains as the selling pressure surrounding the dollar has eased somehow during the European hours amid a deterioration in risk sentiment. However, the pair stays firmly above the 1.2100 handle that acts as the immediate support now along with the 20-DMA that turned back into support following the recent recovery. On the four-hour charts, the common currency is now stuck between the 100- and 200-SMAs while the RSI is flirting with the 70 handle, suggesting the pair could struggle for direction in the short term. On the positive side, the euro stays above the 20-weekly MA, suggesting that bearish risks are limited in the longer term.
GBPUSD has been rallying for the fifth day in a row on Wednesday, refreshing April-2018 highs above 1.3800. The pair climbed to the 1.3855 area in recent trading amid dollar weakness, and it looks like the cable is ready to set fresh records, especially as the daily RSI hasn’t entered the overbought conditions just yet. If so, the next upside target should be expected at 1.3900. On the downside, the immediate support now arrives at 1.3810, followed by the 1.3770 while the key support is still represented by the ascending 20-DMA, today at 1.3690. On the hourly charts, the pound has been trading above the 20-SMA for the second day in a row while retaining a strong bullish bias.
USDJPY witnessed a strong intraday turnaround following an early dip to the 104.40 region where the 100-DMA acted as support, followed by the 20-DMA. The bounce was due to the prevalent upbeat market mood that undermined demand for the safe-haven Japanese yen. Now, the pair needs to regain the 105.00 barrier in order to extend the recovery in the coming days. The pair was last seen trading in the 104.70 area, up 0.16% on the day. If the prices manage to regain a more solid bullish bias, a recovery above 105.00 would be a confirmation of a local reversal from two-week lows. Otherwise, further losses could lie ahead.
Gold prices have been in a recovery mode since last Friday as the dollar stays under the downside pressure these days. The bullion climbed to the 20-DMA that acts as the immediate resistance at this stage, followed by the 200- and 100-DMAs, today at $1,853 and $1,870, respectively. Despite the current recovery, upside potential looks limited in the short term, with bearish risks persisting as long as the prices stay below the mentioned moving averages. In a wider picture, the yellow metal still needs to regain the $1,900 handle in order to see a more sustainable and robust bounce. On the four-hour charts, the technical picture looks neutral, suggesting further gains would be limited in the immediate term.
USDCHF continues to slip from early-December highs on Wednesday following a decisive break below the 100-DMA earlier this week. Furthermore, the pair dipped under the 20-DMA in recent trading, adding to the worsening short-term technical picture. The greenback is now clinging to the 0.8900 handle, a break below which would pave the way to further losses. In this scenario, the next support should be expected at 0.8885, followed by 0.8870. On the upside, the immediate resistance is now represented by the mentioned 20-daily moving average that arrives around 0.8920. as long as the prices stay below this level, downside risks persist in the near term.