The euro is yet to confirm a break above the 20-daily simple moving average on a daily closing basis
EURUSD extends a bounce from four-week lows seen yesterday below the 1.2000 handle. The pair has regained the 20-DMA in recent trading and was trying to hold above the 1.2100 figure at the time of writing. Despite the recovery, further gains could be limited in the short term, and the common currency is yet to confirm a break above the mentioned moving average on a daily closing basis. On the four-hour charts, EURUSD was last seen flirting with the 100- and 200-SMAs, a decisive break above which would pave the way for further gains. Otherwise, the euro may retreat back below the 1.2100 level later today.
GBPUSD continues to hold above the 20-DMA after a brief dip below it on Tuesday. The cable is back targeting long-term lows following a two-day slide seen last week amid broad-based dollar weakness. Despite the recovery momentum looks modest at the moment, the pair could extend the ascent towards the recent peaks above 1.4300 in the coming days as the overall bullish trend remains strong. At the time of writing, the prices were changing hands around 1.3990 after rejection from the 1.4000 handle earlier in the day. This level is the key immediate barrier for GBP bulls, as a decisive break above it would pave the way towards the 1.4025 intermediate resistance, followed by the 1.4060 area.
USDJPY is back on the rise after a short-lived and modest retreat seen on Tuesday. The pair peaked at 106.95 yesterday and continues to hold around the 107.00 figure during the European hours. However, the dollar may lack upside momentum to challenge this barrier that could attract profit-taking in the short term, especially as the daily RSI has just exceeded the 70 threshold, suggesting the overbought conditions could push the prices lower. On the hourly charts, USDJPY has settled above the 20-SMA, but the momentum looks fragile and uneven to bet on further gains in the immediate term. On the downside, the nearest support is now expected at 106.65, followed by the 106.25 area.
Gold prices failed to extend yesterday’s bounce from fresh multi-month lows registered marginally above the $1,700 figure that now acts as the key support. A break below this level could trigger further losses despite the daily RSI has settled around the oversold territory. On the upside, the immediate barrier arrives at $1,740. As long as the bullion remains below this hurdle, bearish risks continue to persist. In a wider picture, XAUUSD continues to trade well below the descending 20-DMA, suggesting the path of least resistance remains to the downside. The current nine-month lows arrive at $1,707, and a break below it would pave the way towards the June 2020 low of $1,703, followed by the mentioned $1,700 handle.
The Aussie dollar has been on the offensive since the beginning of the week, regaining ground lost during the recent plunge that took the prices to February 8 lows last Friday. The pair has already reclaimed the 20-DMA as support, targeting the 0.7870 area that could act as a local resistance. So far, the 0.7840 region caps bullish attempts as the selling pressure surrounding the greenback has eased since yesterday’s plunge. The daily RSI is pointing north in the neutral territory, suggesting there is scope for further recovery in the short term. On the downside, the immediate support arrives at 0.7800, followed by the mentioned moving average that arrives at 0.7780.