In a wider picture, the common currency needs to hold above the 1.1700 handle in order to preserve upside bias on the weekly timeframes
The dollar index reversed yesterday’s pullback to 92.40 and advanced to the 92.80 area on Wednesday, re-shifts its attention to the key level at 93.00. Despite the bounce, the recovery potential looks limited at this stage, with downside risks persisting, albeit have abated somehow in recent trading. EURUSD is holding marginally above the 1.1800 figure but still lacks upside momentum to see more sustained gains. The immediate upside barrier now arrives around 1.1850, followed by the 1.1900 figure. On the downside, the nearest support is expected at 1.1780, followed by the 20-DMA which lies in the 1.1755 area. In a wider picture, the common currency needs to hold above the 1.1700 handle in order to preserve upside bias on the weekly timeframes.
The cable remains stuck within a tight trading range on Wednesday, struggling for direction this week. On Tuesday, the pair climbed to the 200-DMA around 1.3800 before retreating. The pound still lacks upside momentum to see a more sustained ascent in the short term. It looks like GBPUSD would need an extra catalyst to overcome the 1.3800 barrier in the coming days. Furthermore, the pair could come under a more intense selling pressure if the greenback sees further recovery across the board. In this scenario, the cable would get back under the 1.3730 region where the prices derived support earlier today. If this support zone gives up anytime soon, GBPUSD would threaten the 1.3700 figure.
USDJPY bounced from yesterday’s lows around 109.60 to regain the 110.00 figure on Wednesday. The pair climbed to mid-August highs around 110.40 earlier in the day before retreating marginally. The dollar was last seen changing hands around 110.30, up 0.26% for the day. If the greenback manages to confirm recovery above 110.00 on a daily closing basis, further gains could lie ahead in the coming days. On the four-hour timeframes, the RSI has reversed lower in recent trading but the overall technical picture remains upbeat at this stage. On the downside, the key immediate support arrives at 109.65 where the 100-DMA lies. As long as the greenback stays above this figure, bearish risks are limited at this stage.
Gold prices peaked at $1,823 for the first time since early-August on Monday but failed to preserve gains and retreated. Yesterday, the bullion saw modest intraday gains and keeps flirting with the 100- and 200-DMAs today. As long as the prices stay above $1,800, downside risks are limited for the time being. In a wider picture, the bullion needs to overcome the $1,830 resistance zone in order to see a more sustained ascent. However, should the dollar continue to reverse recent losses, gold prices could finish the week below $1,800. If this figure turns into support anytime soon, the market focus would shift back to the 20-DMA around $1,783.
The Kiwi has been climbing north for the fourth day in a row on Wednesday. The pair peaked at nearly one-month highs around 0.7070 yesterday to trim intraday gains eventually. Still, the New Zealand dollar preserves a bullish bias, holding above the 0.7000 key figure on Wednesday. However, further gains could be limited as the prices are approaching the 100-DMA (today at 0.7080), followed by the 200-DMA (today at 7110). These moving averages represent the immediate upside barriers, and the pair may need an extra catalyst to challenge these zones. On the four-hour charts, the RSI has reversed lower around the overbought levels, suggesting the pair could retreat in the immediate term as the selling pressure surrounding the dollar is easing.