The greenback continues to set the tone for GBPUSD that has been relatively steady lately
The dollar is mostly lower today, with the pressure intensifying in recent trading as risk-on tone reemerges after Russia said that a number of drills have finished, and troops are expected to return to bases. As such, EURUSD is now back above both the 1.1300 figure and the 20-DMA, extending gains to the 1.1350 intermediate resistance that has been capping further upside so far during the European trading hours. In the process, the common currency exceeded the 20-DMA while the daily RSI reversed north, adding to a more upbeat technical picture. In the immediate term, EURUSD may need an extra impetus to overcome the 1.1350 barrier on the way towards the 1.1400 figure. Furthermore, traders could proceed to profit-taking and push the euro lower should dollar demand reemerge anytime soon. On the downside, the nearest support is now represented by the 20-DMA, currently at 1.1325, followed by the 1.1300 level.
The cable has already reversed yesterday’s losses to notch intraday highs above 1.3560 earlier in the day. The pair derived support from the 100-DMA, currently at 1.3500, while trading unchanged on the weekly timeframes. The dollar continues to set the tone for GBPUSD that has been relatively steady lately. The pair was last seen changing hands around 1.3545, up 0.14% on the day. On the four-hour charts, the prices are yet to regain the 1.3550 zone where the 20- and 200-SMAs converge. In general, the upside potential looks limited at this point despite the recent recovery, as dollar demand could reemerge at any point. On the downside, the immediate support now arrives at 1.3515 where a slightly descending 20-DMA lies. As long as the pound stays above the 1.3500 figure, downside risks stay limited.
USDJPY bounced from the 115.00 support zone to turn positive at the start of the week. On Tuesday, the pair retains a bullish tone while refraining from challenging the 115.75 intermediate barrier that capped gains yesterday. Should this area give up anytime soon, the dollar will retarget the 115.00 figure, followed by long-term highs around 116.35. Despite a strong bearish correction seen late-last week, the pair remains within a broader uptrend and could see fresh long-term tops in the coming days or weeks. On the hourly timeframes, the greenback was last seen flirting with the 100-SMA, retaining a solid bullish tone during the European hours. On the downside, the immediate support now arrives at 115.50, followed by 115.30, and the 115.00 figure.
Gold prices extended the ascent to mid-2021 highs around $1,880 earlier in the day before correcting lower in recent trading as risk sentiment improved. The XAUUSD pair erased yesterday’s gains and slipped to the $1,855 zone, threatening the $1,850 region during the European hours. Should this level give anytime soon, the downside pressure will intensify. However, it looks like the precious metal could stay above the $1,840 on a daily closing basis. Furthermore, as risk sentiment remains unstable, any sign of renewed geopolitical tensions surrounding Ukraine would push the safe-haven bullion back to the higher end of the extended trading range. In this scenario, XAUUSD could even target the $1,9000 figure.
The Kiwi regained upside bias following three days of losses. The pair slid to one-week lows just below the 0.6600 figure on Monday before rebounding towards the 0.6650 zone today. The bullish momentum was capped by this local resistance where the descending 20-DMA arrives. The New Zealand dollar was last seen changing hands at 0.6625, up 0.21% on the day. Despite the bounce, the recovery potential looks limited in the short term, with bearish risks persisting as long as the prices stay below the mentioned moving average that caps the way towards the 0.6700 level. In the immediate term, the prices could further trim intraday gains and turn even negative if the greenback attracts renewed buying pressure during the North American session.