There is a chance that the euro will make fresh recovery attempts during the US trading later today
EURUSD slipped to April 19 lows around 1.1985 before bouncing to the 1.2000 figure where the 20-DMA lies. Еhe euro needs to turn this moving average back into support in order to stage a recovery and avoid deeper losses in the short term. Now, as the common currency turned flat on the day, there is a chance that the pair will make fresh recovery attempts during the US trading later today if the greenback refrains from another rally. On the four-hour charts, the RSI has reversed north, but the prices are yet to regain the key moving averages in order to see more sustained gains. In the immediate term, downside risks have receded somehow but continue to persist.
The cable bounced from the 20-DMA on Tuesday to trim intraday losses. Today. The pair turned positive, regaining the 1.3900 figure. The pound extended the recovery to the 1.3925 area, nearing this week’s highs around 1.3930. If this figure gives up, GBPUSD would retarget the 1.3975 intermediate resistance last seen on April 29, while the key upside target still arrives at 1.4000. On the downside, the immediate support lies at 1.3875, followed by the 20-DMA at 1.3853. In a wider picture, the cable remains bullish as long as the ascending 20-week moving average acts as support, albeit the upside momentum has waned since February when the pair exceeded the 1.4200 figure amid broad-based dollar weakness.
USDJPY rose on Tuesday but lacked upside momentum to challenge this week’s highs around 109.70 that triggered a bearish correction. Today, the pair came back under some selling pressure while holding above the 109.20 area. As long as the greenback stays above the 109.00 figure, downside risks look limited for the time being. On the upside, USDJPY needs to make a decisive break above the mentioned weekly tops in order to retarget the 110.00 threshold seen one month ago. At this stage, upside risks remain limited, suggesting the dollar could spend some time in a consolidation mode before deciding on a fresh direction.
Gold prices remain stuck within a tightening trading range between the 20- and 100-DMAs that represent support and resistance, respectively. On Wednesday, the precious metal is trading in a flay manner following yesterday’s rejection from local highs just below the $1,800 figure that continues to act as the key hurdle for gold bulls at this stage. It looks like the bullion will lack the momentum to overcome this barrier any time soon, as dollar demand persists, capping gains in the yellow metal. On the downside, the immediate support is represented by the mentioned 20-day moving average that arrives in the $1,770 area.
The Kiwi managed to hold above the 0.7100 handle during the sell-off seen on Tuesday witnessed amid a broad-based rally in the greenback. As a result, the pair bounced back above the 20- and 100-DMAs today, extending the recovery to the 0.7180 area in recent trading. Now, the immediate upside target arrives around 0.7210 where this week’s highs lie. The New Zealand dollar needs to confirm recovery above the mentioned moving averages on a daily closing basis in order to see a more robust rebound in the short term. However, the upside potential looks limited at this stage as the greenback remains relatively steady now.