EURUSD needs to see a decisive break above the 1.1700 barrier in order to stage a more robust bounce that has been witnessed since last week
The dollar has been on the defensive these days as risk-on tone prevails in the global financial markets. However, the safe-haven demand for the greenback picked up, pushing the US currency into the positive territory versus major rivals. As such, the euro slipped from intraday highs around 1.1670 to settle in the 1.1640 area in recent trading. At this stage, the downside potential is limited as long as the pair stays above a slightly descending 20-DMA that arrives just above the 1.1600 figure. On the weekly timeframes, the common currency has settled above the 100-SMA, adding to a more upbeat technical picture. However, EURUSD needs to see a decisive break above the 1.1700 barrier in order to stage a more robust bounce that has been witnessed since last week when the prices plunged to mid-2020 lows around 1.1525.
Following another failed attempt to challenge the 200-DMA, GBPUSD turned negative on Thursday after two days of gains as dollar demand reemerged. The pair dropped to intraday lows around 1.3785 and was last seen flirting with a slightly descending 100-DMA around the 1.3800 figure. A daily close below this moving average would mark some deterioration in the short-term technical picture while a broader outlook remains relatively resilient at this stage despite the daily RSI has turned lower today. On the four-hour timeframes, the pound is about to get below the 20-SMA, suggesting the pair could lack the momentum to erase intraday losses and turn positive on a daily closing basis. The immediate support now arrives at 1.3770, followed by the 1.3750 area.
USDJPY peaked at four-year highs around 114.70 on Wednesday before retreating towards the 114.25 region. Today, the prices stay under the selling pressure to settle around 114.00 during the European hours. Despite the rejection from the mentioned tops, the dollar remains resilient, with the trend remaining bullish. It looks like the pair could see a deeper bearish correction in the near term before staging another rally towards the 115.00 psychological level. On the downside, the nearest support arrives at 113.65, followed by the 113.25 region. On the hourly timeframes, the technical picture looks neutral for the time being, with the RSI directionless around the 40 figure while the prices are clinging to the 114.00 mark ahead of the opening bell on Wall Street.
Gold prices have been climbing north for the third day in a row on Thursday. The XAUUSD pair extended gains to the $1,790 area that represents the intermediate barrier on the way towards the $1,800 figure last seen one week ago when the bullion was rejected from this level. It looks like the precious metal would struggle below $1,800 in the near term as dollar demand has picked up somewhat since yesterday. Should the prices be rejected from there once again, the market focus may shift back to the ascending 20-DMA, today at $1,763. In a wider picture, the yellow metal is stuck between the 20- and 100-week SMAs but looks set to finish the week on a stronger footing.
The Aussie briefly surged to early-July highs around 0.7545 earlier in the day before retreating aggressively. As a result, the pair slipped below the 0.7500 figure amid profit-taking and was last seen changing hands around 0.7485, down nearly 0.4% on the day. Now, the 0.7500 level represents the immediate barrier for the pair. It looks like the prices could stay under pressure in the near term as the greenback corrects higher nearly across the board. During the bearish retreat, the daily RSI has corrected from the overbought territory to settle back below the 70 figure and was last seen pointing south, suggesting the path of least resistance is to the downside for the time being.