The yellow metal keeps losing ground despite a weaker dollar
EURUSD extends its recovery on Friday as the dollar remains on the defensive amid the ongoing profit-taking across the board. The pair regained both the 20-DMA and the 1.2100 figure and now needs to overcome the 1.2150 area that represents the immediate resistance on the wat towards 1.2200. On the four-hour timeframes, the technical picture has improved further following the recent break above the 200-SMA. Meanwhile, the RSI is yet to enter the overbought territory, suggesting there is still room for further gains in the short term. On the downside, the immediate support is now represented by the mentioned 20-daily moving average.
GBPUSD rose to fresh long-term highs ahead of the weekend. The pair climbed to the 1.4000 handle for the first time since April 2018 while retaining a bullish tone during the European hours. However, the cable is yet to confirm the latest breakout on a daily closing basis as the daily RSI has reached the 70 critical level, suggesting the pair could correct lower amid overbought conditions. Anyway, the cable is expected to refresh long-term tops following a possible short-lived correction. On the downside, the immediate support arrives at 1.3920, followed by the 1.3900 figure.
USDJPY has been sliding for the third day in a row on Friday. The pair was rejected from the 106.20 area earlier this week and has been losing ground since then. In recent trading, the dollar slipped back under the 200-DMA, to register fresh lows around 105.30. A break below this zone would pave the way towards the 105.00 figure, just below which the 20-DMA lies. As long as the greenback stays above this moving average, downside risks remain limited. Now, the immediate resistance arrives at 105.50 where the mentioned 20-DMA lies.
XAUUSD keeps losing ground today despite a weaker dollar. The precious metal has been declining for the seventh day in a row already. In recent trading, the bullion slipped to mid-2020 lows around $1,760 before rebounding above the $1,770 region. Now, the yellow metal needs to regain the $1,800 figure in order to proceed to recovery following the recent losses. The downside pressure could ease in the short term as the daily RSI is already nearing the oversold conditions. On the four-hour charts, however, the technical picture remains bearish, with the pair is trading below the key moving averages. If the pressure persists, XAUUSD could target the $1,740 area, followed by the $1,700 handle.
The Kiwi keeps rallying for the second day in a row on Friday amid broad-based weakness surrounding the dollar. The pair climbed to the 0.7270 area that capped gains earlier in the week. A break above this barrier would pave the way towards the 0.7300 handle last seen in early-January. It looks like the New Zealand dollar is ready to extend the ascent as the prices have settled above the 20-DMA while the daily RSI is pointing north in the neutral territory. On the downside, the immediate support is now expected at 0.7225, followed by the mentioned moving average that arrives at 0.7200 today.
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