The euro lacks upside momentum to overcome the 1.1855 barrier, a decisive break above which would pave the way towards 1.1900
EURUSD retains a bullish tone this week, challenging the 1.1855 intermediate resistance on Thursday due to dollar weakness. The pair has settled above the 1.1800 figure but still lacks upside momentum to overcome the mentioned barrier, a decisive break above which would pave the way towards 1.1900. On the shorter-term timeframes, the common currency is trading above the key simple moving averages while the RSI is yet to enter the overbought territory, suggesting the pair could keep testing the 1.1855 area in the immediate term. In case of a bounce from one-month highs, the 1.1790 region would act as the immediate significant support. Upside risks persist as long as EURUSD stays above the 20-day moving average, today at 1.1757.
The cable has been capped by the 200-DMA since mid-August. The pair retains a positive tone for the second day in a row on Thursday but refrains from a decisive break above this moving average which is strengthening the 1.3800 psychological level. On the downside, the pound derives support from a slightly descending 20-DMA (comes around 1.3760). As such, GBPUSD remains confined to a limited trading range these days, struggling to see a more robust ascent despite the dollar lacks safe-haven demand. On the weekly charts, the pair is yet to regain the 20-SMA around 1.3900 in order to see a more solid upside momentum and get back above the 1.4000 key barrier last seen in June.
USDJPY briefly jumped to the 110.40 area on Wednesday before retreating just below the 110.00 figure. Today, the dollar keeps flirting with this figure, deriving support from the 20-DMA which arrives at 109.90. If this moving average gives up in the short term, the dollar would target the 100-DMA, today at 109.67. On the upside, the pair may need an extra catalyst in order to make a decisive break above 110.00 in the coming days. On the four-hour charts, however, the prices have settled above the key moving averages, suggesting the downside potential would be limited in the immediate term. a daily close above 110.10 would somehow improve the short-term technical picture.
Gold prices failed to capitalize on dollar weakness on Wednesday, extending consolidation in a tight trading range. The metal has been lacking directional impetus these days, oscillating around the 100- and 200-DMAs while holding above the $1,800 figure. On the upside, the immediate resistance arrives in the $1,820-$1,825 area for the time being. On the positive side, the $1,800 figure now acts as support, suggesting bearish risks surrounding gold prices are limited. In the immediate term, the yellow metal would remain in consolidative mode around the mentioned moving averages. If the greenback faces a more intense selling pressure following the upcoming employment report, the bullion will likely regain the $1,820 level by the end of the trading week.
AUDUSD has been climbing north for the third consecutive day on Thursday, retaining a strong upside bias since a bounce from a slightly descending 20-DMA. The pair rose to nearly one-month highs just below the 0.7400 figure and was last seen clinging to the upper end of the range. Now, the immediate support is represented by the 0.7365 region, followed by the 0.7300 mark. The daily RSI is pointing north in the neutral territory, suggesting there is further room to the upside in the short term. If the selling pressure surrounding the US dollar intensifies anytime soon, the Aussie may challenge the 0.7400 mark to target the 0.7425 area next.