If the 20-DMA fails to withstand the pressure, the euro could dip towards 1.1800 for the first time in a week
EURUSD failed to break above the 1.1880 intermediate resistance earlier in the day to turn negative in recent trading. The pair slipped to intraday lows around 1.1840 and was last seen clinging to the lower end of the range as the selling pressure surrounding the greenback has eased somehow. Now, the common currency could threaten the 20-DMA, today at 1.1825. If this moving average fails to withstand the pressure, the 1.1800 figure will come into market focus for the first time in a week. On the upside, the 1.1900 level continues to act as the immediate target for euro bulls. Of note, the daily RSI is pointing slightly lower in the neutral territory, which implies that the path of least resistance is to the downside at this stage.
The cable has been retaining a modest upside bias since Tuesday, notching this week’s high at 1.3946 before erasing some gains in recent trading. Despite the dollar trimmed losses, it remains vulnerable in the short term, suggesting the cable could at least stay afloat in the near term. On the four-hour charts, GBPUSD looks directionless while the overall technical picture is neutral. The pair continues to flirt with the 100-DMA that arrives at 1.3920 today. On the upside, a decisive break above the 1.4000 hurdle would improve the near-term technical picture. In a wider picture, the pound looks relatively steady as long as the prices are clinging to the 20-week SMA that lies marginally below the 1.4000 figure.
USDJPY bounced higher following two days of losses. Earlier in the day, the pair dipped below the 109.00 figure to stage a recovery in recent trading. The dollar rebounded to the 109.20 area, lacking upside momentum to see a more robust ascent from local lows. However, it looks like the prices would manage to hold above the 109.00 area that may trigger a bounce eventually. On the upside, the immediate target for dollar bulls arrives at 109.30, followed by the 100-DMA, today at 109.57. In a wider picture, USDJPY needs to overcome the descending 20-DMA that arrives just below the 110.00 figure.
Gold prices turned marginally higher on Wednesday following two days of modest losses. The bullion remains in a tight trading range, struggling for a directional bias these days. The yellow metal bounced from the 20-DMA earlier in the day to register local highs around $1,815. Now, the prices are targeting the 200-DMA that arrives at $1,819 today. The yellow metal now needs to make a decisive break above the mentioned simple moving average in order to get out of the consolidative range. Then, last month’s highs in the $1,834 area will come into market focus. Gold prices could challenge this region in the coming days if the selling pressure surrounding the dollar intensifies.
USDCHF is back in the positive territory on Wednesday following seven consecutive days of losses. The pair plunged to mid-June lows in the 0.9020 area that triggered a bounce and pushed the prices to the 0.9060 region in recent trading. If the recovery continues in the short term, USDCHF could challenge the 200-DMA, today at 0.9073. However, a decisive break above this moving average looks unlikely in the short term as the dollar remains vulnerable in general. On the hourly charts, the pair has exceeded the descending 100-SMA, adding to a brighter short-term technical picture. In the longer term, the outlook looks slightly bearish.