GBPUSD stays close to five-week highs while also holding well above the 100-week SMA
The greenback is trending higher against major rivals on Wednesday, with the USD index challenging nearly one-week highs on the 96.40 area. The dollar was last seen changing hands at 96.38, up 0.18% on the day. Some deterioration in risk sentiment across the financial markets coupled with rising US Treasury yields sent the dollar higher across the board after the recent retreat. As a result, the EURUSD pair slipped back below the 1.1300 area to register one-week lows around 1.1270 in recent deals. As the common currency has dropped below the 20-DMA, the pair may extend the decline towards the 1.1250 region in the short term. On the four-hour charts, the prices have settled below the key moving averages while the RSI looks directionless in the neutral territory, painting a mixed technical picture.
The cable peaked at 1.3460 on Tuesday before easing amid the resurgent dollar demand. The pair stays on the defensive today while holding just above the 1.3400 figure that represents the immediate support. Should this level give up anytime soon, the pound could extend the retreat to the 1.3385 initial target, followed by the 1.3350 zone that will likely cap further losses. Despite the current correction, GBPUSD stays close to five-week highs while also holding well above the 100-week SMA that arrives at 1.3300. In the longer term, the cable could retarget the descending 20-week SMA, currently at 1.3550. On the four-hour charts, the pair struggles to hold above the 20-SMA, suggesting the prices would stay under pressure so far.
USDJPY continues its ascent to notch one-month highs at the 115.00 figure on Wednesday. The RSI is pointing north but is yet to enter the overbought territory, suggesting the pair could see more gains in the near term before a correction takes place amid profit-taking. On the other hand, the greenback may lack the upside impetus to challenge the mentioned psychological figure, a decisive break above which would pave the way towards 115.50 where multi-year highs arrive. Of note, the weekly RSI is now flirting with the overbought levels, which implies that the bullish potential could be limited from here. On the downside, the nearest support now arrives in the 114.80-114.70 area, followed by the 114.35 region.
Gold prices briefly jumped to more than one-month highs around $1,820 on Tuesday before reversing sharply amid the resurgent demand for the safe-haven dollar as risk demand has waned overnight, with stock markets looking mixed on Wednesday. As such, the precious metal slipped back to the $1,805 area while staying under pressure today. The XAUUSD pair is now threatening the $1,800 psychological mark that could prevent the bullion from a deeper retreat along with the 200-DMA, currently at $1,797. The daily RSI looks directionless in the neutral territory, suggesting the bearish potential remains limited at this point. In the immediate term, the XAUUSD pair needs to hold above the mentioned moving average in order to stay afloat and see a bounce higher eventually. On the upside, the nearest resistance now arrives at $1,807, followed by the $1,813 area and the mentioned highs around $1.820.
Following four days of consolidation, the bitcoin price came under pressure on Tuesday. The BTCUSD pair extended losses to one-week lows around $47,300 where the 200-DMA capped the losses. Today, the largest cryptocurrency by market capitalization has settled just below the $48,000 figure, struggling to attract demand at lower levels. Earlier, the prices were rejected from the $51,000 level that capped bullish attempts last week. On the hourly timeframes, bitcoin was last seen flirting with the descending 20-SMA. A decisive recovery above this moving average would ease the downside pressure but the bullish potential will likely stay limited at this point. In a wider picture, the coin has already erased nearly all last week’s gains, finishing the second bearish month in a row.