The common currency lacks upside momentum amid the persisting demand surrounding the greenback
EURUSD turned marginally higher on Friday to erase yesterday’s losses due to a weaker dollar across the board. The pair climbed back to the 1.1750 area but still struggles to overcome this barrier as the common currency lacks upside momentum amid the persisting demand surrounding the greenback. On the hourly charts, the technical picture has improved in recent trading, but the flattish RSI is suggesting the euro could stay below the 1.1750 region for the time being. A decisive break above this immediate barrier would pave the way towards the 1.1800 figure. On the downside, the immediate support arrives at 1.1720, followed by the 1.1700 level that capped losses earlier in the week.
The cable looks directionless after a decline seen on Thursday. The pair dipped to 1.3790 and was last seen flirting with the 1.3800 figure. During the sell-off, the pair slipped under the 20-DMA, adding to a downbeat technical picture. A daily and weekly close below the 1.3800 level would mark further deterioration in the short-term technical outlook. If the pressure persists in the near term, the pound could challenge the ascending 200-DMA that arrives at 1.3770 today. However, it looks like the downside potential is limited for the time being. Of note, the RSI on the shorter-term timeframes is pointing slightly higher, suggesting GBPUSD could regain the 1.3800 handle on a daily closing basis.
Gold prices keep trending higher these days, retaining a bullish bias on Friday. The precious metal rose to the $1,760 area during the European hours, a break above which would open the way towards the $1,800 figure. The bullion was last changing hands around the mentioned intraday highs, with the bullish momentum remaining intact as weaker Treasury yields and the dollar offer support to gold prices. In a wider picture, gold prices need to regain the key simple moving averages in order to get back to long-term highs above $1,900 last seen in early-June. The initial hurdle is represented by the 20-DMA that arrives at $1,790, followed by the 100- and 200-DMAs, today at $1,804 and $1,814, respectively. On the downside, the yellow metal needs to hold above the $1,730 area if a pullback takes place in the coming days.
USDCHF erased yesterday’s gains as the dollar retreated marginally ahead of the weekend. The pair encountered resistance around 0.9240 to slip to the 0.9215 area, a break below which would pave the way towards the 0.9200 figure. However, it looks like the bearish potential is limited at this stage, as the greenback is relatively resilient despite the current retreat. On the four-hour charts, USDCHF dipped under the 20-SMA in recent trading while the RSI is correcting lower, suggesting the pair could stay on the defensive in the near term. In a wider picture, however, the technical outlook remains constructive, with the dollar finishing the week on a bullish note after a recovery above the 20-week SMA that arrives at 0.9130.