The euro refrains from revisiting yesterday’s highs registered around 1.1845
Dollar demand has eased across the market on Wednesday after US CPI missed expectations. Consumer prices in August rose 0.3% over the previous month versus 0.4% expected. As a result, EURUSD turned positive to erase previous losses and extended gains to the 1.1830 area. Still, the pair refrains from revisiting yesterday’s highs registered around 1.1845 in a knee-jerk reaction to inflation data. Now, the common currency needs to hold above the 1.1800 figure in order to stay afloat and retain a bullish bias in the short term. EURUSD was last seen changing hands around 1.1822, up 0.17% for the day. On the four-hour charts, the euro is losing upside momentum, with the RSI getting flat in the neutral territory, suggesting the upside potential could be limited from here in the near term.
The cable briefly dipped below the 1.3800 figure earlier in the day to stage a bounce eventually. The pair climbed back to the 1.3840 area but is still well off yesterday’s highs above 1.3900 where the 100-DMA capped a short-lived rally. Now, the pound needs to make a decisive break above the 200-DMA, today at 1.3825. If this moving average turns into support in the short term, the 1.3850 zone will come into the market focus next. In a wider picture, the bullish potential has been capped by the 20-week SMA since June, and it looks like the prices will stay below this barrier in the days and weeks to come as the greenback could stay on the offensive due to a hawkish tone from the Federal Reserve.
USDJPY slipped below the key moving averages on Tuesday to accelerate the retreat today. The pair extended losses to one-month lows around 109.25 and was last seen clinging to the lower end of the extended trading range. Several failed attempts to make a decisive break above the 110.00 figure suggest that the greenback lacks the bullish impetus to stage a more robust ascent, with downside risks persisting in the short term. On the four-hour charts, however, the RSI has reached the 30 figure before turning flat, which implies that the selling pressure could ease in the immediate term. In this scenario, the prices may see a bounce to the 109.50 area, followed by the 109.75 intermediate resistance on the way towards the 110.00 barrier.
Gold prices surged to the $1,808 area where the 200-DMA capped gains on Tuesday. Today, the precious metal retreated, clinging to the $1,800 figure during the European hours. The bullion needs to hold above the $1,800 level on a daily closing basis in order to stay afloat and avoid another retreat in the coming days. Of note, this figure is now threnthened by the 20-day SMA, suggesting a decisive break above this area could add to upside momentum in the market. In general, the upside potential in gold prices remains limited, with bearish risks persisting for the time being. If the yellow metal fails to stay above the mentioned 20-DMA in the near term, the $1,780 key support zone will come back into the market focus.
USDCHF has been trending lower since yesterday. The pair peaked at 0.9240 at the beginning of the week and has been struggling to regain upside momentum since then. The dollar extended losses to the 0.9170 region in recent trading, threatening the 20-DMA, today at 0.9160. This moving average has been acting as support for a week already, so a break below it would add to the negative tone surrounding the greenback. On the other hand, it looks like the bearish potential could be limited at this stage, and the mentioned moving average may trigger a bounce in the near term. On the hourly timeframes, USDCHF has settled below the key moving averages while the RSI is nearing the oversold territory, which implies that the dollar could stay on the defensive in the immediate term.