The common currency needs to regain the 1.1900 figure in order to avoid a deeper sell-off
EURUSD peaked around 1.1920 earlier in the day before reversing lower as the greenback proceeded to a widespread recovery following yesterday’s losses. The pair dipped to the daily lows of 1.1883 and was last seen flirting with the 100-DMA. In the immediate term, the common currency needs to regain the 1.1900 figure in order to avoid a deeper sell-off ahead of the weekend. On the downside, the key support is represented by the 20-DMA that arrives at 1.1840. On the hourly charts, the technical picture has deteriorated after a break below the 20-SMA earlier in the day. Still, the short-term technical picture looks neutral in general.
GBPUSD has been trending lower for the fourth day in a row on Friday, struggling to shrug off the selling pressure despite the safe-haven dollar demand has eased this week. The pair dipped to two-week lows around 1.3670 where the ascending 100-DMA arrives. As long as the cable stays above this moving average, downside risks remain limited. On the four-hour charts, the RSI is pointing south but is yet to enter the oversold territory, suggesting there is room for further downside in the short term. If the 100-DMA fails to withstand the selling pressure, the 1.3640 region will come back into market focus for the first time since early-February. On the upside, the immediate resistance now arrives at 1.3750, followed by the 20-DMA (today at 1.3807).
USDJPY bounced from the 109.00 figure on Thursday to reverse higher in recent trading. In the process of recovery, the dollar regained the 20-DMA and climbed to the 109.70 area. A break above this figure would pave the way towards the 110.00 region. On the one hand, the fact that the prices are back above the mentioned moving average suggests the greenback could preserve intraday gains by the end of the trading day. On the other hand, the upside potential surrounding the USD looks limited, with bearish risks persisting despite the daily RSI has corrected lower from the overbought territory. In a wider picture, USDJPY remains within the uptrend as long as prices stay above the 108.00 figure.
Gold prices failed to challenge the $1,760 region on Thursday and turned negative today amid dollar recovery. However, the downside pressure looks limited, with the precious metal holding above the 20-DMA that represents the key short-term support around $1,730. If the prices manage to hold above this moving average in the short term, another bull run could be expected following the current correction. On the weekly timeframes, the bullion looks consolidative while staying below the descending 20-week SMA that arrives at $1,800 today. On the upside, the $1,760 area remains in market focus. A break above this level would pave the way towards the mentioned 20-week SMA.
USDCHF extended losses to more than two-week lows around 0.9230 before bouncing in recent trading. The pair has been on the defensive since peaking at 0.9470 last week. During the retreat, the pair slipped below the 20-DMA that now represents the key upside target in the short term. As long as the prices stay below this moving average (today at 0.9330), downside risks continue to persist. Furthermore, despite the current recovery attempts, the pair is yet to confirm a reversal that looks like a short-lived bounce so far. In other words, the dollar could resume the decline following the current correction.