The dollar looks steady ahead of fresh economic data out of the United States and the upcoming Federal Reserve meeting
EURUSD bounced from the 1.2090 area to climb to the 1.2150 intermediate resistance earlier in the day. However, the common currency failed to extend the recovery to come off the mentioned highs. The pair was last seen trading just marginally higher for the day, and it looks like the prices could get back under the downside pressure as the greenback looks relatively steady ahead of fresh economic data out of the United States and the upcoming Federal Reserve meeting. As long as the pair stays below the 1.2200 figure, downside risks continue to persist despite the recent bounce. In the longer run, however, the technical outlook for the euro remains upbeat.
GBPUSD saw modest gains at the start of the week before turning negative again on Tuesday. The pair peaked around 1.4130 earlier in the day to get back under the 1.4100 figure in recent trading. Now, as the cable has settled below the 20-DMA while the daily RSI is pointing slightly south, the path of least resistance is to the downside in the short term while a longer-term outlook remains bullish, with the pair being marginally off long-term highs registered at 1.4250 at the start of this month. On the hourly charts, however, the pound was rejected from local highs earlier in the day, suggesting the prices could stay on the defensive in the immediate term.
USDJPY climbed to 1.5-week highs around 110.16 earlier in the day before turning flat in recent trading. The pair failed to extend a two-day rally that took the prices from the 109.30 area where the now ascending 20-DMA acted as support. Despite the dollar retreated in recent trading, the overall outlook looks more upbeat now, with the 110.30 region is back in market focus. A decisive break above this area would take the greenback to the 110.60 area last seen in early-April. However, the pair may need an extra catalyst to settle above 110.00 in the short term.
Gold prices briefly dipped to nearly one-month lows around $1,844 at the start of the week before bouncing to the $1,865 area on Tuesday. During the sell-off, the bullion managed to hold above the 200-DMA, suggesting downside risks could be limited at this stage. Now, the precious metal needs to hold above the $1,860 area in order to regain upside bias and get back above the ascending 20-DMA, today at $1,888. A decisive recovery above this moving average would pave the way towards the $1,900 psychological barrier last seen late last week. On the four-hour charts, the XAUUSD pair is now stuck between the 20- and 200-SMAs while the RSI looks directionless, pointing to a neutral immediate technical picture.
The Aussie failed to challenge the 100-DMA on Monday to come back under the selling pressure today. The pair slipped to 1.5-week lows around 0.7685, struggling to recover above the 0.7700 figure during the European hours. As the daily RSI is pointing south in the neutral territory while the prices stay below the 100- and 20-DMAs, the path of least resistance is to the downside at this stage. A decisive recovery above the 0.7700 mentioned local resistance and a daily close beyond it would somehow improve the short-term technical picture. On the four-hour charts, the outlook looks bearish, with upside potential remains capped by the key simple moving averages.