If the euro fails to regain the 1.1600 figure anytime soon, the downside pressure could intensify to push the prices to 1.1570
EURUSD is back under pressure on Thursday after a short-lived and modest bounce seen yesterday. The common currency extended losses to 1.5-week lows around 1.1580 and was last seen clinging to the lower end of a relatively tight intraday range. If the pair fails to regain the 1.1600 figure anytime soon, the downside pressure could intensify to push the prices to 1.1570. Also on the negative side, EURUSD has settled below the 20-DMA while the daily RSI is pointing slightly higher in the neutral territory, suggesting there is room for further losses in the near term. On the four-hour timeframes, the technical picture looks neutral-to bearish, as the prices are now below the key moving averages while the RSI is directionless. As of writing, EURUSD was changing hands around 1.1590, down 0.10% on the day.
The cable has been struggling to regain the descending 100-DMA since late last week. Following another rejection from this moving average (today at 1.3775), the pair managed to stay slightly positive on the day, however, suggesting the bearish potential could be limited in the short term. On the downside, the immediate support arrives at 1.3700, followed by an ascending 20-DMA that lies around 1.3675. This SMA has been acting as a support zone for two weeks already. So, a break below the moving average would bring a more aggressive selling pressure. On the upside, a decisive recovery above 1.3800 would bring mid-September highs around 1.3835 back into the market focus.
USDJPY encountered local resistance around 114.30 to switch into a corrective mode. On Thursday, the pair has settled below the 114.00 figure while refraining from challenging local lows around 113.40. Should this region withstand the downside pressure, a bounce could be expected. In this scenario, the dollar may regain the 114.00 level and climb back to the mentioned highs, followed by four-year tops seen at 114.70 last week. On the four-hour charts, USDJPY is now stuck between the key moving averages, pointing to a neutral technical picture in the immediate term. From a wider perspective, the pair remains within a bullish trend despite the current retreat.
Gold prices have been trending north since Wednesday, but the upside momentum looks limited. The precious metal bounced from the $1,780 weekly low to settle around the $1,800 figure during the European hours on Thursday. As such, the bullion is now back above the 100- and 200-DMAs but is yet to confirm the latest recovery on a daily closing basis. In a wider picture, gold prices look set to finish the third bullish week in a row. Furthermore, the prices have settled above the 20-week SMA. Should the bullion confirm a decisive break above the $1,800 figure anytime soon, last week’s highs around $1,813 will come back into the market focus. On the downside, the immediate support arrives at $1,794 where the mentioned 200-DMA lies. For the time being, the technical picture looks neutral, with the RSI directionless around the 58 figure while the XAUUSD pair itself is steady at $1,800.
The Aussie dipped to the 0.7480 area early in Asia before bouncing strongly to settle just below the flat-line, around the 0.7500 figure. The pair attempts to preserve the upside bias seen since the beginning of the week. AUDUSD failed to challenge local highs around 0.7535 on Wednesday and has been struggling to stay afloat since then. Still, the reemerging buying pressure on the dips suggests the downside potential is limited at this stage. Furthermore, the pair is just marginally off early-April highs seen last week around 0.7550. It looks like the Australian dollar could resume the ascent following some short-term consolidation to refresh multi-month peaks in the 0.7600 area eventually. On the hourly charts, AUDSUD was last seen struggling below the 20-SMA.