The USD index stays below the 95.00 figure, clinging to fresh two-month lows seen around 94.70
The greenback plunged across the board to notch two-month lows despite jot US inflation figures, with Treasury yields falling as well. The USD index stays below the 95.00 figure, clinging to fresh two-month lows seen around 94.70. Should this area give up anytime soon, the greenback may derail the 94.00 figure. As such, EURUSD exceeded the 1.1400 mark and registered two-month highs in the 1.1480 zone as the common currency derived support from the intensifying sell-off in the greenback. Should the common currency overcome this barrier, the pair would target the 1.1500 level, followed by the descending 100-DMA. The last time the pair traded around this moving average was in mid-2021, so a decisive break above it would be a strong bullish signal from the technical point of view. On the downside, the immediate support now arrives at 1.1455.
The GBPUSD pair climbed to late-October highs above 1.3745, exceeding the 200-DMA during the European hours. A weaker dollar along with the prospect of rate hikes by the Bank of England boosted sterling further. The pair has been rallying for the fifth day in a row on Thursday, pushing the daily RSI into the overbought territory. On the hourly charts, the cable retains a bullish tone despite the overbought conditions. It looks like the prices could see fresh multi-week highs before correcting lower. On the downside, the immediate target now arrives at 1.3700, followed by the 1.3660 area. On the weekly timeframes, the pound has been rising for the fourth week in a row, accelerating the bullish momentum following a decisive break above the 20-week SMA, currently at 1.3555.
USDJPY keeps sliding on Thursday, staying under pressure after yesterday’s break below the 20-DMA, currently at 114.85. Earlier in the day, the pair extended the decline to another 2.5-week low of 114.36 before trimming intraday losses to the 114.60 region in recent trading. On the four-hour timeframes, the prices are now below the key SMAs while the RSI is flirting with the oversold territory, pointing to a less bearish picture as the greenback at least managed to come off fresh local lows. Still, the bearish risks continue to persist as long as the prices stay below the 115.50 zone. In a wider picture, USDJPY remains within a broader uptrend, correcting marginally from the five-year highs seen last week.
Following four days of gains, gold prices turned slightly negative on Thursday as traders proceeded to profit-taking after a solid rally triggered by a weaker dollar. The precious metal peaked at one-week highs in the $1,828 area, just shy of the $1,830 critical resistance, and slipped to intraday lows while staying above the $1,820 figure during the European hours. The bullion has entered a bullish consolidation phase, oscillating in a narrow trading range, as market players continue to digest another surge in the US consumer prices. Should the XAUUSD pair fail to hold above the $1,820 region anytime soon, the next support zone around $1,815 will come back into the market focus. Then, the 20 and 200-DMAs at $1,806 and $1,801, respectively, are expected to hold the potential selling pressure. Anyway, the downside potential now looks limited as long as the prices stay above the $1,800 psychological level.
The Kiwi advanced to late-November highs around 0.6880 and was last seen clinging to the upper end of the extended trading range as the US dollar remains on the defensive across the market. Now, the pair may target the 0.6900 figure, but it looks like the New Zealand dollar may need an extra driver to challenge this barrier in the short term. Should the prices proceed to a downside correction, the nearest support could be expected at 0.6845, followed by the 0.6825 intermediate support and the 0.6800 figure. However, as the daily RSI retains a strong bullish bias and is yet to enter the overbought territory, it looks like the path of least resistance remains to the upside at this point.