The euro extended gains to the 1.2060 area, flirting with the key 100-DMA
EURUSD regained upside impetus on Friday following a short-lived dip below 1.2000 seen on Thursday amid a broad-based rally in the greenback. The pair extended gains to the 1.2060 area, flirting with the key 100-DMA during the European hours. If this moving average gives up on a daily closing basis, the short-term technical outlook would improve further. Otherwise, the common currency could see another local downside correction. If so, the key support should be expected at 1.2000. Of note, the RSI in the short-term timeframes is getting flat, suggesting upside momentum could be limited for the time being.
GBPUSD bounced from the 20-DMA during yesterday’s decline, to turn positive on Friday as the dollar is retreating following short-lived gains. The pair bounced from the 1.3820 region, climbing to 1.3890 in recent trading. Now, the 1.3900 figure is back in market focus, as a decisive break above this barrier would pave the way towards this week’s highs around the 1.4000 psychological level. On the downside, the mentioned 20-day simple moving average (today at 1.2812) represents the key barrier for sterling bears. As long as the prices stay above this figure, downside risks are limited. The daily RSI is pointing just slightly higher, suggesting the pound could lack the impetus to see more robust gains in the short term.
USDJPY extends its gradual decline on Friday, flirting with fresh early March lows around 107.80. The technical picture has deteriorated further following a break below the 108.00 figure. Now, the market focus is shifting back to the 107.00 level. The daily RSI continues to trend lower in the neutral territory while prices stay well below the 20-DMA that arrives today in the 109.27 area. Furthermore, the dollar has settled below the 20-hour moving average since Thursday, adding to a cloudy technical picture in the short term. In other words, the path of least resistance remains to the downside for the time being.
Gold prices were mostly higher this week, nearing the 100-DMA that arrives just above the $1,800 figure. The bullion derives support from broad-based weakness around the dollar but still lacks bullish impetus to see more robust and sustained gains these days. XAUUSD extended gains to $1,797 on Thursday before retreating into negative territory. Today, the yellow metal is marginally higher, but modest intraday gains suggest a decisive break above the mentioned moving average is unlikely at the moment. On the four-hour charts, however, the pair derives support from the 20-SMA.
Following three days of modest gains, the pair is back under pressure on Friday as the dollar is losing ground across the board. USDCHF peaked just below the 0.9200 figure earlier in the week but failed to challenge this barrier and retreated to the 0.9140 region today. If this local support gives up, the 0.9100 figure will come back into market focus. On the four-hour charts, the pair has settled below the 20-SMA while the RSI is pointing south, suggesting the selling pressure could persist in the immediate term. In a wider picture, USDCHF is finishing the third consecutive week lower, extending the pullback from tips around 0.9470 seen at the start of this month.
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