The common currency turned positive on the day while still staying below the 1.1750 intermediate barrier
The dollar is steady ahead of the key event of the week. The USD index has settled within a tight range in the 93.20 region. EURUSD struggles for direction after deriving support from the 1.1700 figure at the beginning of the week. Earlier in the day, the pair dipped to the 1.1716 area before bouncing in recent trading. The common currency turned positive on the day during European hours while still staying below the 1.1750 intermediate barrier that caps the way towards the 1.1800 figure last seen one week ago. On the hourly charts, the pair has settled above the 20-SMA but the upside bias in the RSI looks too modest to bet on stronger gains, especially as traders remain cautious ahead of the outcome of the Federal Reserve meeting due later today.
The cable failed to resume the ascent on Tuesday to finish just marginally higher. Today, the pair is back under the selling pressure, challenging fresh one-month lows in the 1.3630 area. If this immediate support gives up anytime soon, the 1.3600 figure will come back into market focus. On the negative side, the pound has settled below the key moving averages while the daily RSI is pointing lower but is yet to enter the oversold territory, suggesting there is room for further losses in the short term. On the upside, a sustained recovery above the 1.3700 level would pave the way towards the 1.3725 region, followed by the 20-DMA, today at 1.3770. 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.
USDJPY dipped to one-week lows around 109.10 earlier in the day before bouncing to the 109.60 area. In recent trading, the dollar retreated marginally while trading up 0.27% on the day during the European hours. On the one hand, as long as the prices stay above 109.00, downside risks remain limited. On the other hand, the inability to regain the 110.00 figure points to waning demand for the greenback versus the Japanese yen. Furthermore, USDJPY is yet to overcome the 109.80 region where the 20- and 100-DMAs converge. In the immediate term, the dollar needs to hold above the 109.35 zone in order to avoid another bearish correction.
Gold prices peaked at $1,780 on Tuesday before correcting lower marginally. Today, the XAUUSD pair struggles for direction around $1,175 ahead of the FOMC verdict. On the downside, the $1,760 area represents the immediate support, followed by the $1,750-$1,740 region that capped losses at the beginning of the week. As long as the bullion remains above this region, downside risks are limited. On the four-hour timeframes, the technical picture looks neutral, with the prices being stuck between the key moving averages while the RSI is directionless around the 55 mark. In a wider picture, gold needs to stay above a slightly ascending 100-week SMA (today at $1,755) in order to avoid fresh losses following two bearish weeks.
USDCAD peaked just below the 1.2900 figure at the beginning of the week and has been correcting lower since then as the buying pressure surrounding the greenback has eased. On Wednesday, the pair has settled around the 1.2800 level, refraining from challenging yesterday’s lows seen at 1.2740. It looks like USDCAD will continue consolidation in the immediate term as the dollar struggles for direction ahead of the Fed decision. On the downside, a break below the mentioned lows would pave the way towards a slightly ascending 20-DMA, today at 1.2663. As long as the pair stays above the 1.2700 figure, bearish risks are limited. In a wider picture, the dollar remains buoyed, holding well above the 20-week SMA, while the weekly RSI keeps pointing north in the neutral territory.