The renewed selling pressure may push GBPUSD to 1.3400 if dollar demand persists after the Fed meeting
EURUSD
The dollar’s ascent is losing steam as traders are getting more cautious ahead of the Fed’s decision. Still, EURUSD has settled below the flat-line during the European hours, struggling to regain the 1.1300 figure after yesterday’s brief dip towards 1.1260. As of writing, the pair was changing hands around 1.12870, down 0.11% on the day. Should the 1.1280 intermediate support give up anytime soon, the common currency may derail the mentioned lows and retarget the 1.1230 zone, followed by the 1.1200 figure last seen two months ago. On the hourly charts, the prices are back below the 20-SMA, adding to a bearish technical picture in the short term. On the upside, the nearest barrier for the euro bulls now arrives at 1.1310, followed by the 20-DMA, currently at 1.1243.
GBPUSD
GBPUSD dipped to fresh early-January highs around 1.3435 on Tuesday before reversing intraday losses. Today, the pair struggles for direction in the 1.3500 region while refraining from another sell-off during the European hours as risk sentiment has improved somehow, thus capping demand for the safe0haven greenback. Still, the pound stays below the key moving averages while the daily RSI looks directionless in the neutral territory, suggesting the recovery potential is limited from here. Furthermore, should the pair fail to overcome the 1.3500 barrier, followed by the 100-DMA, currently at 1.3530, the renewed selling pressure may push GBPUSD below the mentioned local lows, down to 1.3400 if dollar demand persists after the Fed meeting outcome.
USDJPY
Following a dip below 113.50 at the start of the week, USDJPY has shifted into recovery mode and has been trending higher since then. On Wednesday, the pair extended gains to nearly one-week highs around 114.17 and it looks like the bullish bias will persist at least in the short term as risk demand picks up, thus capping the upside potential in the safe-haven Japanese yen. The next target for dollar bulls arrives at 114.35, followed by the 114.60 intermediate barrier on the way towards the 115.00 hurdle. However, the pair may struggle to regain this figure in the near term as the dollar bulls remain cautious after the recent sell-off. In a wider picture, USDJPY bounced from the 20-week SMA following two weeks of losses while also staying within a broader bullish trend.
XAUUSD
Gold prices peaked at November 19 highs just below the $1,855 area on Tuesday to finish the day at $1,847. Today, the XAUUSD pair turned slightly negative, treading water around $1,845 as the upside momentum has waned somehow. However, it looks like the downside potential is limited for the time being, and the path of least resistance is to the upside. Should the Fed refrain from a more hawkish tone later today, the yellow metal may capitalize on the dollar’s potential weakness. In this scenario, the bullion could challenge the mentioned highs and target the $1,860 region eventually. On the four-hour charts, the technical picture looks mixed, with the prices staying above the key moving averages while the RSI is pointing slightly lower in the neutral territory, suggesting XAUUSD could see deeper intraday losses before regaining the upside momentum.
