The euro slipped back to the 20-DMA, a break below which would pave the way towards the 100-DMA
EURUSD failed to regain the 1.2100 handle earlier in the day and resumed the decline as the safe-haven dollar demand reemerged following some retreat seen in Asia. As a result, the pair slipped back to the 20-DMA, a break below which would pave the way towards the 100-DMA, today at 1.2043. Should this moving average give up, the 1.2000 psychological level will come back into market focus. Of note, the daily RSI looks directionless in the neutral territory for the time being, suggesting further losses could be limited in the short term. Now, the immediate upside target for the pair arrives at 1.2100, followed by the 1.2150 area that triggered yesterday’s plunge.
GBPUSD remains under pressure, extending the pullback from late-February highs registered around 1.4166 earlier this week. In recent trading, the cable slipped to the 1.4000 psychological support, a break below which could bring additional selling pressure in the short term. In this scenario, the ascending 20-DMA (today at 1.3940) will come back into market focus for the first time since last week. On the upside, the pound now needs to regain the 1.4050 area first, followed by the 1.4080 area and the 1.4100 figure. On the four-hour charts, the pair has slipped under the 20-SMA while the RSI is pointing south, suggesting GBPUSD could stay under the selling pressure in the near term.
USDJPY bounced strongly from the 20-DMA yesterday, retaining a bullish bias on Thursday, albeit the upside momentum has slowed. Earlier in the day, the pair climbed to April 9 highs around 109.80 before retreating to the flat-line in recent trading, suggesting the dollar bulls may be not ready yet to push the prices above the 110.00 figure. Furthermore, a downside correction could be expected if the pair fails to hold above the 109.50 region in the short term. On the hourly charts, USDJPY was last seen challenging the 20-SMA, a decisive break above which would somehow improve the near-term technical picture. In the longer term, the pair needs to confirm recovery above the 109.00 figure on a weekly closing basis in order to extend the bounce from recent lows.
Gold prices extend the pullback from three-month highs registered earlier this week around $1,845ю Today, the bullion slipped to the $1,808 area, threatening the $1,800 handle, a break below which would mark further deterioration in the short-term technical picture. as the dollar remains elevated, it looks like the yellow metal will at least struggle to stage a solid recovery at this stage. If demand reemerges, however, the prices could regain the $1,825 intermediate resistance to retarget the mentioned multi-week highs eventually. On the weekly timeframes, the technical picture remains relatively upbeat despite the recent slide.
USDCHF is stuck just below the 0.9100 area where the 100- and 200-DMAs converge, capping further bullish attempts following two days of gains. If the prices manage to overcome this barrier any time soon, the dollar will likely face a stronger barrier represented by the descending 20-DMA that has been acting as resistance since early-April. Despite the prices are close to this moving average, the pair will hardly be able to make a decisive break above this hurdle in the short term even as the greenback remains on the offensive across the board. On the downside, the immediate support arrives at 0.9065 where intraday lows lie.