EURUSD plunged to two-month lows below 1.2000, extending losses to the 1.1930 area
The dollar index jumped across the market after the Federal Reserve brought forward its forecasts for hiking interest rates. The USD index extended the sharp rebound further north of 91.00 on Thursday. As such, EURUSD plunged to two-month lows below 1.2000, extending losses to the 1.1930 area. Now, the euro needs to regain the key moving averages to turn bullish again. In the near term, the pair will likely stay under pressure before bouncing back above the 1.2000 figure. If the decline continues, the next support should be expected around 1.1910, followed by 1.1900 and 1.1880. On the upside, the initial hurdle for euro bulls is represented by the 200-DMA that arrives marginally below 1.2000.
The cable dipped to the 100-DMA around 1.3933 on Thursday, suffering losses for the third consecutive session. The pair has been trading below the 20-DMA since the start of the week, staying under pressure amid a pickup in dollar demand. Now, the pound needs to hold above the mentioned moving average in order to avoid deeper losses. It looks like the pair will stay on the defensive in the near term before staging a reversal. Despite the current retreat, a broader uptrend remains intact so far, with long-term highs around 1.4250 being in focus. On the hourly timeframes, the RSI has entered the oversold territory, suggesting further losses could be limited in the immediate term.
USDJPY rallied aggressively on Wednesday, extending gains to the 110.80 area for the first time since early-April after bouncing from the ascending 20-DMA last week. The pair is now targeting the 111.00 barrier, and it looks like the greenback could extend the ascent in the near term, as the daily RSI is pointing north but is yet to enter the overbought territory. On the other hand, there are overbought conditions in the shorter-term timeframes, suggesting the bullish impetus could fade soon. If so, the prices could retreat to the 110.50 area initially, followed by 110.30, and the 110.00 figure. In a wider picture, the pair looks bullish as well.
Gold prices have been losing ground for the fifth day in a row on Thursday. The bullion has broken below the $1,800 figure in recent trading, trying to stay above the directionless 100-DMA. In the process, the XAUUSD pair dipped under the 200-DMA, adding to a downbeat technical picture. As the prices have derailed the $1,800 psychological level, it looks like gold could refresh early-May lows in the near term. If the 100-DMA fails to withstand the pressure, the yellow metal could target $1,770 next. On the upside, a decisive recovery above $1,800 on a daily closing basis would somehow improve the near-term technical picture.
The Aussie has been trending lower for the third day in a row on Thursday. The selling pressure has intensified following the Fed meeting, with the pair extending losses to two-month lows around 0.7580 in recent trading. At the start of the week, the prices were rejected by the 100-DMA in the 0.7725 area and have been losing ground since then. Now, as the Australian dollar has settled below 0.7600, it looks like the pair could see deeper losses, especially as the daily RSI is pointing lower but is yet to enter the oversold territory. On the four-hour charts, the Aussie is now below the key moving averages, adding to a downbeat short-term technical picture.