The USD index has got back into the positive territory in recent trading
EURUSD has settled above the 1.1300 figure on Thursday, struggling to extend yesterday’s advance. Earlier in the day, the pair peaked in the 1.1340 zone that capped the rally on Wednesday. It looks like the upside potential surrounding the common currency is limited after this week’s gains, as the USD index has got back into the positive territory in recent trading. On the four-hour charts, EURUSD failed to hold above the descending 200-SMA while the RSI has reversed south, suggesting the pair could erase some if its recent gains if the greenback extends the recovery in the short term. In a wider picture, the euro stays within a broader bearish trend despite the recent rebound above the 20-DMA. Furthermore, the prices are yet to confirm the bounce on a weekly closing basis.
The pound has been rallying for the third session in a row on Thursday, extending gains to the 1.3400 figure for the first time in a month. The pair was last seen clinging to this psychological level that could act as a local resistance in the short term. In this scenario, a pullback towards the 1.3340 initial target could be expected. Should the ascent continue, the cable may advance to 1.3450. On the hourly timeframes, the RSI has entered the overbought territory, which implies that the bullish potential could be limited from here. On the other hand, should the prices hold above the 1.3280 region in the near term, the pair would preserve the upside bias and could extend the ascent if dollar bulls refrain from reentering the game anytime soon.
USDJPY has been retaining a bullish bias since a decisive break above the 20-DMA earlier in the week. On Thursday, the pair advanced to the 114.35 area, clinging to one-month highs as demand for the safe-haven Japanese yen has abated. However, it looks like the greenback would need an extra catalyst to overcome the mentioned highs in the short term. In a wider picture, the pair looks set to finish the third bullish week in a row, with the weekly RSI approaching the overbought territory, which implies that USDJPY could fail to regain the 115.00 figure this month. In the immediate term, failure to challenge the mentioned highs would send the prices back below the 114.00 level, followed by the 20-DMA around 113.50.
BTCUSD peaked at $49,500 on Wednesday and has been struggling since then. The largest cryptocurrency by market capitalization slipped to the $48,000 figure and was last seen flirting with the descending 20-DMA that arrives marginally above the intraday lows. Should this moving average give up anytime soon, the 200-DMA, currently at $47,200, will come into the market focus next. Still, the coin remains positive on the weekly timeframes as long as the prices remain above the $47,000 figure. It looks like the digital currency could derive support from the mentioned moving averages and avoid deeper losses in the short term. Otherwise, the market focus would shift back to the $45,500 significant support.
Gold prices keep climbing north due to a weaker dollar. Today, the XAUUSD pair advanced to nearly one-week highs around $1,808 and was last seen clinging to the upper end of the extended range. Should the precious metal confirm a recovery above the $1,800 psychological level on a daily closing basis, the short-term technical outlook for the bullion would improve further. However, it looks like the prices will struggle to challenge last week’s highs around $1,815 as the downside risks surrounding the dollar are limited for the time being. In a wider picture, the outlook for gold has improved somehow after the prices rebounded above the 20- and 200-SMAs that converge around $1,793.