If the dollar receives a boost from the central bank, the common currency could threaten the 1.1750 region that capped losses last week
EURUSD encountered the intermediate resistance around 1.1840 on Tuesday and has been struggling to regain bullish bias since then. Today, the pair oscillates around the 1.1800 figure, with the downside pressure mounting in recent trading as traders shift focus to the outcome of the Fed meeting due later today. If the dollar receives a boost from the central bank, the common currency could threaten the 1.1750 region that capped losses last week. On the four-hour charts, the pair slipped below the 100-DMA and was last seen targeting the 20-SMA, today at 1.1797. The path of least resistance remains to the downside at this stage while on the upside, the immediate target for euro bulls arrives at 1.1830 where intraday highs lie.
GBPUSD edged to nearly two-week highs at 1.3894 earlier in the day, treading water in a tight trading range on Wednesday as the dollar struggles for direction ahead of the FOMC meeting. The pound has been trending higher these days, extending the rebound from multi-week lows registered at 1.3570 last week. However, further gains could be limited in the near term, as the prices are nearing the 100-DMA, today just below the 1.3900 figure. This moving average could act as resistance and trigger a retreat towards 1.3860 or even lower. On the hourly timeframes, GBPUSD is flirting with a slightly ascending 20-SMA which could turn into resistance in the short term.
USDJPY is stuck between the 20- and 100-DMAs following a plunge seen on Tuesday. Today, the pair regained a modest upside bias but still struggled to overcome the 110.00 figure that represents the intermediate barrier on the way towards the 20-DMA, today at 110.27. If the dollar managed to overcome this hurdle on a daily closing basis, the local highs around 110.60 will come back into market focus next. Of note, the technical picture is improving on the four-hour timeframes, with the RSI pointing north while are trending higher, targeting the area where the key moving averages converge. In general, the short-term outlook for the greenback looks relatively upbeat despite the pair lacks the recovery momentum at this stage.
Gold prices have been steady this week, treading water around the $1,800 figure. The bullion maintains a slightly bullish tone during the European hours. However, the upside potential looks limited for the time being as the greenback is back on the offensive today. If the dollar extends the ascent in the short term, the bullion could come back under selling pressure. On the downside, the key support arrives at $1,890, followed by the $1,775 region last seen at the beginning of this month. In a wider picture, the XAUUSD pair oscillates around the 20-week SMA that arrives at $1,800, with the technical outlook looking neutral for the time being as the RSI is directionless around 48. A decisive break above this moving average would pave the way towards the $1,820 region, followed by this month’s tops seen at $1,834 registered on July 15th.
USDCAD remains stuck between the 20- and 200-DMAs these days. The pair encountered resistance in the form of the 20-DMA earlier in the day to turn negative. As a result, the dollar erased most of yesterday’s gains and was last seen changing hands around 1.2565, down 0.25% for the day. Despite the bearish bias has reemerged, downside risks look limited as long as the prices stay above the mentioned ascending 20-DMA, today at 1.2523. This moving average has been acting as support since early-June. On the upside, USDCAD needs to make a decisive break above the 1.2600 figure in order to proceed to a sustained recovery towards late-January peaks last seen just above 1.2800 in June.