The cable has been trading within a limited range these days and could resume the ascent following the current consolidation
EURUSD
EURUSD keeps flirting with the 100-DMA on Wednesday, staying under some selling pressure as the greenback extended weekly recovery to three-day highs. The euro has been trending lower since rejection from beyond the 1.2100 figure, threatening the 1.2050 area where the mentioned moving average arrives. If this support zone gives up, the common currency could see steeper losses in the short term. So far, the technical picture looks fairly neutral at this stage. On the hourly charts, the pair is trying to hold above the 100-SMA while the RSI looks directionless. On the upside, the prices need to stage a decisive ascent above the 1.2100 figure in order to target fresh two-month highs eventually.
GBPUSD
GBPUSD turned bearish following three days of modest gains. The pair peaked at 1.3930 earlier in the week and has been struggling to see more robust gains since then. Today, the cable slipped below the 1.3900 handle though managed to come off intraday lows seen around 1.3860 earlier in the day. In a wider picture, the pound remains bullish while staying above the ascending 20-weekly moving average. The pair has been trading within a limited range these days and could resume the ascent following the current consolidation. On the downside, GBPUSD has been deriving support from the 20-DMA for nearly two weeks already. As long as the prices stay above this moving average, downside risks look limited.
USDJPY
USDJPY has been rising for the third day in a row on Wednesday. As a result, the dollar climbed to the 109.00 handle before retreating slightly in recent trading. The dollar needs to make a decisive break above this figure in order to extend the bounce from early-March lows seen late last week in the 107.50 area. In the short term, the path of least resistance is to the upside, but the bullish potential looks limited despite the current recovery in dollar demand. On the four-hour charts, USDJPY is now stuck between the 100- and 200-SMAs while retaining a bullish bias within the range.
XAUUSD
Gold prices keep trading in a channel limited by the 20- and 100-DMAs. Within the range, the XAUUSD pair retains a bullish bias that has intensified this week amid dollar recovery. As such, following rejection from the $1,785 area on Tuesday, the bullion extended losses to $1,763 today before trimming losses slightly. If the downside pressure intensifies any time soon, the yellow metal could challenge the ascending 20-DMA that arrives at $1,756 today. Should this moving average give up, the $1,735 area will come back into market focus. However, it looks like bearish risks are limited for the time being.
USDCHF
USDCHF turned marginally positive following two days of flat trading. However, the pair lacks upside momentum to challenge the 0.9200 figure that represents the immediate target for dollar bulls. USDCHF climbed to nearly one-week highs around 0.9180 earlier in the day before retreating during the European hours. As long as the greenback stays below the mentioned barrier, the bullish potential looks limited. On the other hand, the pair has been deriving strong support from the 100-DMA since early-March, suggesting downside risks remain capped. On the four-hour charts, a long upper wick was created in recent trading which could be a sign of the persisting dollar weakness despite the recent bounce.
