Gold prices are finishing lower for the first time in five weeks
In currencies, the dollar has been retreating versus major rivals for the second day in a row on Friday. EURUSD declined in a knee-jerk reaction to the ECB decision before bouncing to finish marginally higher. Today, the pair climbed to the 1.1850 intermediate resistance earlier in the day. The upside potential looks limited despite the dollar corrects lower for the time being. As of writing, the common currency was changing hands around 1,1828, up just 0.04% for the day. The euro still threatens the 1.1800 figure despite the recent bounce. A break below it would pave the way to a slightly ascending 20-DMA, today at 1.1787. On the hourly timeframes, EURUSD failed to hold above the key moving averages while the RSI has reversed south in the neutral territory, suggesting the pair could get negative on the day in the near term.
The cable extended the recovery on Friday as dollar demand has eased nearly across the board. The pair exceeded the 200-DMA to climb to the 1.3885 area before retreating marginally in recent trading. If the pound manages to stay afloat and preserve gains in the near term, the prices could overcome the 1.3900 barrier next. On the downside, the immediate support now arrives at 1.3820 where the mentioned 200-day SMA lies. As long as the pair stays above this moving average, downside risks are limited. On the hourly charts, the RSI has corrected lower from the overbought territory to turn flat in recent trading. GBPUSD was last seen changing hands at 1.3872, +0.27% for the day. On the weekly charts, the technical picture looks neutral, with the pair trading unchanged after erasing losses witnessed in the first half of the week.
USDJPY plunged to 109.60 yesterday before turning positive on Friday. The pair advanced to the levels just below the 110.00 figure which acts as the key immediate barrier for dollar bulls. As long as the prices stay below this resistance zone, upside risks are limited. On the downside, a break below the mentioned lows would pave the way to deeper losses, with the initial support arriving at 109.40, followed by the 109.00 figure. On the four-hour timeframes, the pair has settled around the key moving averages, with the key 20-SMA arriving just at the 110.00 level. If this figure turns into support anytime soon, the 110.20 intermediate resistance followed by the 110.45 area will come into the market focus next. On the weekly timeframes, the greenback is finishing off earlier highs but has settled in the positive territory despite an abrupt plunge seen on Thursday.
Gold prices briefly exceeded the $1,800 handle earlier in the day before retreating to the flat-line during the European hours. As such, the XAUUSD pair failed to break above the 20-DMA which continues to cap recovery attempts. On the downside, the key immediate support is represented by the $1,780 level which has been capping losses since last month. On the four-hour charts, the prices were rejected by the 100-SMA, with the overall technical picture looking neutral-to-bearish. A daily and weekly close above the $1,800 figure would somehow brighten the short-term outlook but the bullion would need to make a decisive break above the 100-DMA (today at $1,815) in order to shrug off weakness. In a wider picture, gold prices are finishing the week lower for the first time in five weeks.