If the 1.1550 zone gives up in the near term, the common currency would target the 1.1535 area next
The dollar came under pressure across the market in a knee-jerk reaction to the outcome of the FOMC meeting late on Wednesday to close the day modestly lower against its major counterparts. However, the dollar demand reemerged on Thursday, helping it to pare most of the post-Fed losses. EURUSD exceeded the 1.1600 figure but had to give up yesterday’s gains today as the greenback switched into recovery mode. The pair dipped back to the 1.1550 region during the European hours, threatening this week’s lows. If the mentioned zone gives up in the near term, the common currency would target the 1.1535 area. As the prices are back below the 20-DMA and the daily RSI is pointing lower, it looks like the path of least resistance is to the downside at this point.
The cable peaked just below the 1.3700 figure earlier in the day but failed to preserve the upside bias as the greenback erased post-Fed losses. As a result, the pair dipped back to the 1.3630 area and was trading 0.30% lower on the day during the European hours. At the same time, the pound refrains from revisiting local lows seen just above the 1.3600 figure this week. as long as the prices stay above this level, downside risks are limited in the short term. On the negative side, GBPUSD has been struggling to regain the 20-DMA (around 1.3700) these days. In general, the technical picture looks neutral as long as the sterling stays within a 1.3600-1.3700 range.
USDJPY has been changing hands within a tight trading range since the beginning of the week. The pair keeps clinging to the 114.00 figure while also deriving support from the ascending 20-DMA, today at 113.80. On the upside, the immediate barrier is represented by the 114.30 area, followed by this week’s highs around 114.45. It looks like the dollar will keep oscillating around 114.00 in the short term before deciding on the further direction. As long as the mentioned moving average acts as a support zone, upside risks persist. On the four-hour charts, the technical picture had deteriorated somehow after a rejection from 114.30. However, the prices are still holding above the 100-SMA, suggesting the downside potential could be limited from here.
Gold prices turned marginally positive on Thursday following two days of losses. The XAUUSD pair failed to hold above the 100- and 20-DMAs yesterday and briefly plunged below the $1.760 region for the first time since mid-October. The bullion has settled around $1.1775 since then, deciding on the further direction during the European hours. Should the 20-DMA (today at $1.780) give up anytime soon, the yellow metal may regain the $1,783 mark to finish the week in positive territory. On the downside, gold prices need to hold above the $1,770 area in order to avoid another sell-off in the short term. On the hourly timeframes, the bullion keeps flirting with the 20-SMA while the RSI is pointing slightly higher, suggesting XAUUSD could at least stay afloat later in the day.
The Kiwi came under some selling pressure after another rejection from the 0.7180 region earlier today. The pair slipped to 0.7130 and was last seen clinging to the lower end of the intraday range, trading 0.34% lower on the day. Should this level give up in the short term, the market focus will shift back to the 0.7100 figure where the 20- and 200-DMAs converge. Of note, the 200-SMA has been acting as support for over two weeks already. As such, bearish risks seem limited as long as the prices stay above it. On the upside, the immediate target arrives at 0.7155, followed by the 00.7180 region and the 0.7200 figure. At the current levels, NZDUSD would finish the week in negative territory after three weeks of solid gains.