The euro could extend the retreat in the coming days if the US CPI report shows consumer prices rose to fresh nearly 40-year highs in January
The dollar looks steady, refraining from a more robust ascent even as US 10-year Treasury yields hit fresh pandemic-era highs around 1.97%, approaching the 2% mark. The USD index looks directionless around 95.50 on Wednesday after yesterday’s rejection from the 95.75 zone. After flirting with the descending 100-DMA, EURUSD turned marginally higher on the day, desperately trying to hold above the 1.1400 figure. However, it looks like the pair will dip below this support zone in the short term and could extend the retreat in the coming days if the US CPI report shows consumer prices rose to fresh nearly 40-year highs in January. On shorter-term timeframes, the technical picture has improved somehow in recent trading, with the common currency clinging to daily highs around 1.1430.
The cable saw a bounce from the 100-DMA to finish unchanged on Tuesday. As dollar demand has abated, GBPUSD regains the upside momentum today, extending gains to fresh weekly in the 1.3585 area. Should this intermediate barrier give up, the pair will retarget the 1.3600 figure, followed by this month’s highs in the 1.3630 zone. However, the pound will hardly be able to break above this region in the short term as the greenback could regain the bullish bias ahead of the key US CPI report. On the hourly timeframes, the RSI is approaching the overbought territory, suggesting GBPUSD could stage a local reversal on the way towards 1.3600. On the downside, the immediate support now arrives at 1.3545 where the 20-DMA lies. Then, the market focus would shift towards the 100-DMA, currently at 1.3505. As long as the prices stay above this level, the downside potential is limited for the time being.
USDJPY peaked at 115.66 earlier in the day before retreating in recent trading. The pair was last seen changing hands around 115.40, down 0.11% on the day. Despite the correction, the dollar continues to trend higher these days, with the 115.00 figure has now turned back into support. On the other hand, the pair may need an extra catalyst in order to overcome the mentioned high that represents a solid local resistance. As such, the greenback could spend some time in consolidation before deciding on the further direction. Of note, the daily RSI has turned slightly lower in the neutral territory, suggesting the bullish potential is limited at this point. Should USDJPY continue to give up recent gains, the next target for USD bears could be expected at 115.30, followed by the 115.00 figure.
Gold prices have been trading north for the fourth session in a row on Wednesday. The XAUUSD pair climbed to fresh February highs just below the $1,830 figure before retreating marginally in recent trading. The bullion has been retaining bullish bias since late January, but a reversal could take place in the near term if the greenback receives a strong boost from inflation data. In this scenario, the market focus would shift back to the $1,800 figure. In the immediate term, however, the precious metal could retain a bullish bias and refresh local highs beyond $1,830, but the selling pressure will likely reemerge eventually. On the weekly timeframes, there is room for further gains, with the prices holding above the key moving averages.
The BTCUSD pair registered one-month highs around $45,500 on Tuesday but failed to preserve gains and retreated back to the flat-line on a daily closing basis. Today, the coin extended the downside correction to the $43,000 figure and was last seen trading around $43,600, struggling to reenter positive territory. Still, the technical picture has improved over the last few days, and it looks like the digital currency would extend its gradual ascent in the near term. Should the buying pressure persist, the market focus will shift towards stiff resistance in the $49,200 zone where the 100- and 200-DMAs converge. It looks like this barrier could deter BTC bulls and trigger a major downside correction amid profit-taking. At this point, the immediate resistance is represented by the mentioned one-month highs, followed by the $46,300 area.