In a wider picture, the technical outlook looks downbeat as well, with EURUSD finishing the fourth bearish week in a row
The USD index has settled around 94.30, struggling for direction as US 10-year yields slipped back below the 1.50% level. Also, traders are cautious ahead of the key economic data out of the United States due later today. EURUSD extended losses to fresh mid-2020 lows around 1.1560, retaining a bearish bias for the sixth day in a row on Friday. The pair continues to cling to the lower end of the range during the European hours following failed recovery attempts seen earlier in the day. It looks like the common currency would continue to struggle amid dollar strength in the short term, especially as the prices have settled below the 1.1600 figure. In a wider picture, the technical outlook looks downbeat as well, with EURUSD finishing the fourth bearish week in a row.
The cable has been recovering for the second day in a row on Friday. The pair bounced from late-2020 lows around 1.3400 to settle marginally above the 1.3500 figure today. A daily close above this level would pave the way towards the 1.3610 handle early next week, with the intermediate barrier arriving at 1.3535. On the downside, the nearest support lies in the 1.3470 area. As long as the prices stay above this zone, downside risks are limited. Despite the latest bounce, GBPUSD is finishing the week with decent losses amid the persistent dollar strength. Furthermore, this is the fourth bearish week in a row, with the pound trading just marginally above 2021 lows.
USDJPY peaked at February highs just above the 112.00 figure on Thursday before correcting lower aggressively. The pair finished around 111.20 to extend losses to 111.00 today. Still, the current retreat looks like just as a local correction due to overbought conditions following a six-day rally. Should the 111.00 figure give up in the short term, USDJPY will target the 110.75 intermediate support next. Following the decline, the dollar could resume the ascent, however, and register fresh multi-month highs in the coming days. On the hourly charts, the RSI looks directionless, suggesting the downside potential is limited from here. A bearish bias in the daily RSI looks too modest as well to bet on deeper losses at this stage.
Gold prices found support just above the $1,720 region to bounce strongly yesterday. The XAUUSD pair extended recovery to the $1,764 area and finished slightly off intraday highs. On Friday, the bullion has settled just above $1,750, with a bearish bias reemerging during the European hours. It looks like the precious metal would struggle to settle firmly above the $1,760 area in the short term as the greenback remains upbeat and elevated nearly across the market, capping upside potential in the USD-denominated commodity. On the four-hour timeframes, the prices are stuck between the 20- and 100-SMAs, struggling for direction in the immediate term.
USDCHF bounced from the 0.9300 figure earlier in the day to erase yesterday’s losses in recent trading. During the European hours, the pair has settled around 0.9330, up 0.17% on the day. Despite the dollar lacks the upside momentum to stage a more robust ascent, the prices stay elevated following yesterday’s rally to April highs in the 0.9370 area. The daily RSI is pointing north but is yet to enter the overbought territory, suggesting there is room for further gains in the short term. On the hourly charts, the greenback has settled above the key moving averages, adding to an upbeat technical picture. If the 0.9330 turns back into support in the near term, another rally towards fresh multi-month highs could be expected.