The euro could suffer deeper losses below 1.1200 as the Federal Reserve continues to signal a faster tapering process
The dollar demand has picked up marginally in recent trading ahead of jobs data. As such, EURUSD retains a bearish bias for the third session in a row to get back below the 1.1300 figure during the European hours. So far, the selling pressure looks modest, but it could intensify if November’s payrolls exceed expectations. In this scenario, EURUSD could get back below the 1.1250 area to threaten the 1.1235 zone where this week’s lows arrive. On the upside, the 1.1300 figure has turned back into resistance following the failed recovery attempts. In a wider picture, the common currency could suffer deeper losses below 1.1200 as the Federal Reserve continues to signal a faster tapering process.
The cable continues to tread water in a tight range these days, struggling for a direction below the 1.3300 level. On Friday, the bearish bias has reemerged but looks limited as long as the prices stay above the 1.3250 zone, followed by this year’s lows seen just below 1.3200 earlier in the week. As long as the pound stays below the descending 20-DMA, currently at 1.3390, the path of least resistance remains to the downside in the short term. On the four-hour timeframes, bearish risks persist as well, with the RSI pointing lower while the prices struggle to regain the 20-SMA, which implies that GBPUSD could struggle to get back above the 1.3300 figure on a daily and weekly closing basis. The short-term technical outlook would deteriorate further if the pair fails to hold above the 1.3250 region.
USDJPY has been in recovery mode since yesterday. On Friday, the dollar climbed to the 113.50 intermediate resistance that capped gains and triggered a mild retreat in recent trading. Still, the pair looks set to finish the week on a more positive footing despite staying red on the weekly timeframes due to a plunge to October 11 lows seen earlier in the week. USDJPY was last seen changing hands around 113.35, up 0.19% on the day. On the hourly timeframes, the technical picture has improved somehow after a recovery above the key moving averages. However, the greenback is yet to regain the 113.50 area on a daily closing basis in order to extend the recovery and get back above the 114.00 barrier eventually.
Gold prices dipped to one-month lows around $1,760 on Thursday before bouncing marginally. Still, the downside pressure reemerged today, with the yellow metal changing hands in the $1,767 area, nearly unchanged from yesterday’s closing price. The bearish bias that prevails this week could persist and even intensify should dollar bulls reenter the game in the coming days. On the downside, the immediate support is represented by the mentioned lows, followed by the $1,750 key zone. As long as the bullion stays above this level, bearish risks are limited. Meanwhile, the nearest barrier on the upside arrives at $1,790, where the 100- and 200-DMAs converge.
The Aussie remains under heavy selling pressure, struggling to find support despite the oversold conditions. The AUDUSD pair extended losses to more than one-year lows around 0.7050 and was last seen clinging to the lower end of the range, suggesting the decline could extend further. The next support could be expected at 0.7020, followed by the 0.7000 psychological level that may cap the selling pressure. In case of a reversal, the nearest upside target would be represented by the 0.7100 figure and then by the 0.7135 intermediate barrier. In a wider picture, the weekly RSI is pointing to deeper losses as the prices haven’t reached the oversold territory just yet.