The euro is flirting with one-week lows around 1.2060
EURUSD was rejected from local peaks around 1.2170, to slip below the 20-DMA on Tuesday. Today, the selling pressure surrounding the common currency has intensified as the dollar proceeded to a widespread recovery amid the resurgent risk aversion. As such, the pair dipped under the 1.2100 figure and was last seen flirting with one-week lows around 1.2060. A break below this zone would pave the way towards the 1.2000 psychological level that will likely act as support and trigger a bounce as the euro still remains within a broader bullish trend. On the four-hour timeframes, the European currency is now below the key moving averages, which implies that the pair could stay on the defensive in the immediate term.
GBPUSD has retreated from fresh long-term highs seen around 1.3950 yesterday. On Wednesday, the pair slipped below the 1.3900 figure, to the 1.2860 area. Despite the resurgent dollar demand, the downside pressure surrounding the cable looks limited, with the prices staying just shy of the mentioned tops, a break above which would pave the way towards the 1.4000 psychological level last seen in April 2018. On the hourly charts, however, the technical picture has deteriorated somehow as the cable has slipped below the ley moving averages while the RSI has reversed lower in the neutral territory. If the pressure intensifies any time soon, the pair could target the 1.800 figure next.
USDJPY peaked at five-month highs in the 106.20 area earlier in the day before retreating in recent trading. The pair failed to confirm the latest breakout but was clinging to the 106.00 figure at the time of writing, suggesting the dollar could make another bullish attempt in the short term. On the positive side, the greenback has settled above the 20-, 100-, and 200-DMAs that now act as support levels. If the corrective pressure intensifies, the pair could derail the 105.80 intermediate support to challenge the 200-daily moving average, today at 105.53. On the upside, a decisive break above 106.20 would pave the way towards 106.50.
Gold prices have been on the defensive for the fifth day in a row on Wednesday. In recent trading, the precious metal plunged to early-December lows, now threatening the $1,780 area. The bullion could suffer further losses, considering the daily RSI is pointing lower in the neutral territory while the $1,800 level now acts as resistance for the first time in nearly two weeks. However, in the immediate term, the downside potential looks limited, and it looks like the XAUUSD pair could trim intraday losses later today. In case of a recovery, the mentioned $1,800 would be the immediate key target for buyers.
USDCHF briefly plunged to late-January lows around 0.8870 on Tuesday before staging a strong recovery as the dollar saw a local reversal across the board. As a result, the pair regained the 0.8900 figure and extended the ascent to 0.8960 in recent trading. Furthermore, the dollar turned positive on the weekly charts following the recent rally. The question now is if USDCHF manages to hold onto gains and refrain from another sell-off, especially as the prices stay below the descending 100-DMA that represents the next resistance just below the 0.9000 handle. On the positive side, the pair has regained the 20-DMA while the daily RSI is pointing north in the neutral territory, suggesting there is room for further upside in the short term.