The common currency stays below the 1.1750 intermediate barrier, so upside risks are limited at this stage
The dollar holds steady on Wednesday as traders cautiously waiting for the FOMC meeting minutes due later today. EURUSD bounced from fresh lows around 1.1700 to turn marginally positive on the day. Still, the common currency stays below the 1.1750 intermediate barrier, so upside risks are limited at this stage. To challenge this zone, the pair needs to overcome the intraday highs around 1.1730. On the four-hour charts, the technical picture is neutral, with the RSI looking directionless. Should the 1.1700 handle give up anytime soon, the 1.1640 will come into market focus next. However, it looks like this psychological level would manage to withstand the downside pressure to trigger a more pronounced bounce eventually.
USDJPY has been climbing north for the second day in a row on Wednesday, flirting with the 100-DMA that arrives at 109.65. A decisive break above this moving average would pave the way towards the key 20-DMA, today at 109.85. However, it looks like the upside potential would be limited from here, so this moving average will likely continue to act as the immediate resistance in the short term. If the selling pressure surrounding the greenback reemerged anytime soon, the pair would get back under the 109.50 region to retarget the 109.10 level where this week’s lows arrive. On the hourly charts, the prices are now stuck between the key moving averages while the RSI is pointing slightly lower in the neutral territory, suggesting the upside potential is limited at this stage.
Gold prices keep treading water around the 20-DMA on Wednesday. The bullion lacks upside momentum to challenge the $1,800 immediate resistance. A decisive break above this level would improve the near-term technical picture. However, it looks like the precious metal would need an extra catalyst to overcome the next resistance represented by the 100- and 200-DMAs that arrive at $1,807 and $1,812, respectively. In a wider picture, the ZAUUSD pair needs to break above the ascending 20-week SMA, today at $1,809 in order to see a more sustained bullish bias. In the immediate term, the bullion needs to hold above the $1,770 region in order to preserve recent gains and avoid another sell-off that could take the prices below the $1,730 area.
The Kiwi has been under pressure for the third day in a row on Wednesday. Following yesterday’s plunge, the pair extended losses to mid-November lows around 0.6870 today before trimming intraday losses in recent trading. The New Zealand dollar was last seen changing hands in the 0.6900 area, down 0.39% lower for the day. Despite the recent bounce, NZDUSD remains under pressure, with downside risks persisting as long as the prices stay below the 20-DMA, today at 0.6990. On the downside, if the mentioned eight-month lows fail to withstand the pressure, the 0.6840 region will come into market focus next. A daily close above 0.6900 would improve the near-term technical picture somehow.