The euro’s bullish trend remains intact despite the correction
EURUSD
The dollar regained some bullish bias on Friday, buoyed by strong GDP and employment data. EURUSD failed to get back above the 1.2200 figure while deriving support from this week’s lows around 1.2170. A break below this area would pave the way towards the ascending 20-DMA, today at 1.2143. On the weekly charts, the common currency looks to finish unchanged following the retreat from peaks above 1.2200. In shorter-term timeframes, the RSI is pointing south, suggesting the euro could at least remain on the defensive as the greenback preserves a modest upside momentum for the time being. Still, the overall bullish trend remains intact for the time being.
GBPUSD
The cable advanced on Thursday to finish around the 1.4200 figure. However, the pair failed to preserve gains and retreated to the 1.4170 on Friday. So far, downside risks remain limited, with the overall technical picture still looks upbeat. However, a break below the mentioned daily lows would pave the way towards the 1.4100 figure, followed by the 20-DMA that arrives at 1.4080. On the four-hour charts, the picture looks neutral at the moment, as the RSI is pointing south while the prices keep holding above the 20-SMA. On the upside, a decisive recovery above the 1.4200 immediate resistance would bring the 1.4235 region back into market focus.
USDJPY
USDJPY has been climbing north for the fourth day in a row on Friday. The pair extended gains to early-April highs just below the 110.00 figure that represents the key immediate barrier for dollar bulls. If this figure gives up any time soon, the pair will first target the 110.15 area. The daily RSI is pointing higher in neutral territory, suggesting there is room for further upside in the short term. On the other hand, the 110.00 figure could deter the bulls and trigger a downside correction ahead of the weekend. In this scenario, immediate support is expected at 109.70, followed by the 109.30 area and the 109.00 figure.
XAUUSD
Gold prices exceeded the $1,900 figure for the first time since January earlier in the week. However, the bullion failed to preserve gains and retreated to the $1,887 area on Friday. As the downside pressure looks modest, the bullion could regain upside momentum following the current consolidation. Otherwise, a break below the $1,880 region would pave the way towards $1,865, followed by the ascending 20-DMA around $1,850. Of note, the daily RSI is pointing slightly lower but remains in the overbought territory, suggesting the yellow metal could see a deeper bearish correction before another rally to fresh January highs takes place.
NZDUSD
NZDUSD turned negative on Friday following four consecutive days of gains. The pair peaked at 0.7315 earlier in the week and has been correcting lower ahead of the weekend. The New Zealand dollar slipped to the 0.7240 area in recent trading before bouncing slightly. Despite the current retreat, the overall technical picture remains upbeat, with downside risks limited as long as the prices stay above the ascending 20-DMA, today at 0.7218. However, it looks like the pair could stay on the defensive in the near term. If the mentioned lows fail to withstand the selling pressure, a break below the 20-DMA would trigger deeper losses.
