A daily close below 1.1800 would be a sign of a more downbeat tone surrounding the euro
Despite risk sentiment has improved somehow in Europe, the dollar remains relatively steady following the ascent seen earlier in the day. EURUSD failed to overcome the 1.1850 intermediate resistance and slipped back to the 1.1800 area while holding off April lows seen around 1.1770 on Thursday. The daily RSI is pointing slightly lower in neutral territory, suggesting the common currency could at least stay under pressure in the short term. A daily close below 1.1800 would be a sign of a more downbeat tone surrounding the euro and would bring the mentioned multi-week lows back in market focus. In a wider picture, the technical outlook on the weekly timeframes continues to deteriorate as well.
GBPUSD keeps losing ground on Friday, still struggling to regain the descending 20-DMA. The pair extended losses to one-week lows around 1.3790 before bouncing marginally in recent trading. As a result, the pound climbed back to 1.3800, suggesting downside risks could be limited in the short term. On the other hand, the upside potential looks too weak to bet on a sustained recovery at this stage, with the path of least resistance remaining to the downside. On the hourly charts, the technical picture has deteriorated over the past hours, and it looks like the cable could finish the week under the 1.3800 figure.
USDJPY bounced from this week’s lows around 109.70 to regain upside bias on Friday following two days of losses. The pair is now back above the 110.00 figure but is yet to regain the 20-DMA to confirm the latest recovery. As long as the dollar stays below this moving average (today at 110.55), the bullish potential looks limited. Now, the pair needs to hold above the 110.00 level in order to finish the week slightly positive. On the downside, the key support arrives at 109.50. As long as USDJPY stays above this region, bearish risks are limited. The pair was last seen changing hands at intraday highs around 110.20, up 0.32% for the day.
Gold prices extended gains to one-month highs around $1,834 on Thursday. The precious metal failed to preserve the upside momentum and eased marginally today. The bullion was last seen changing hands at $1,823, slightly below the 200-DMA that remains in market focus for the time being. The daily RSI is now pointing marginally lower in neutral territory, suggesting the downside pressure could persist in the near term. However, gold prices stay afloat despite the current retreat. Now, the precious metal needs to hold above the $1,820 immediate support in order to avoid a deeper retreat towards the $1,800 key level. On the four-hour charts, the prices are now stuck between the 20- and 200-SMAs while the RSI looks directionless, suggesting the short-term technical picture looks neutral for the time being, with downside risks being limited despite the corrective mood.
The Kiwi dipped on Thursday before rebounding to the 0.7000 figure today despite a steady dollar. The pair bounced from local lows around 0.6970 earlier on the day to turn positive as risk sentiment has improved somewhat. Now, the New Zealand dollar needs to get back above the 0.7000 figure where the 20-DMA lies. Of note, the pair failed to break above 0.7030 early in Europe, suggesting the recovery momentum is limited for the time being. On the four-hour charts, the prices were last seen targeting the 20-SMA while the RSI reversed lower, which implies that the pair could at least struggle to extend the rebound in the immediate term.