Should the pressure intensify, the common currency will easily get back below 1.1000 in the short term
The USD index corrected lower from May 2020 highs around 99.40 seen at the start of the week. The greenback came under pressure amid profit-taking as risk sentiment has improved ahead of Russia-Ukraine talks. The greenback retreated back to the 98.00 area and turned negative on the weekly charts. Still, the US currency stays within a broader uptrend and could resume the ascent soon due to its safe-haven status. Of note, the index has already regained the 98.00 figure in recent trading to turn positive on the day as risk sentiment deteriorated again. As such, EURUSD rallied to the 1.1095 zone on Wednesday before retreating towards 1.1025 earlier in the day. The pair was last seen changing hands around 1.1040, down 0.325 on the day. Should the pressure intensify, the common currency will easily get back below 1.1000 in the short term.
The cable bounced from November 2020 lows seen below 1.3100 earlier in the day. The pair advanced to the 1.3200 figure that capped gains earlier in the day. It looks like the recovery potential is limited from here, especially as the greenback trims recent losses while also staying within a broader uptrend. On the four-hour charts, the pound is threatening the 20-SMA while the RSI looks directionless around the 46 figure, painting a neutral short-term technical picture. Should the 1.3140 zone give up anytime soon, the prices would retarget 1.3100. On the upside, a decisive break above 1.3200 is needed for a more sustained bullish correction. Anyway, bearish risks continue to persist as long as the prices stay below the descending 20-DMA that arrives just above the 1.3400 figure, followed by the 100-DMA, currently at 1.3457. In the immediate term, the pair may try to stay afloat around 1.3170.
USDJPY has been rallying for the fourth day in a row on Thursday. The dollar exceeded the 116.00 figure and advanced to the 116.20 zone. Should this intermediate barrier give up, the prices would target multi-year highs registered at 116.35 at the start of the year. Of note, the pair was once again rejected from this zone in early February, suggesting the dollar could need an extra impetus to overcome the barrier, followed by the 117.00 figure. On the downside, the immediate support now arrives at 115.75. As of writing, USDJPY was changing hands just below the 116.00 level, up just 0.11% on the day. Should the pair fail to regain this figure on вa daily closing basis, a local bearish correction could be expected ahead of the weekend. In a wider picture, however, the USD remains strongly bullish as long as the prices stay above the ascending 20-week SMA, currently at 114.40.
Gold prices briefly jumped to fresh long-term highs around $2,070 earlier in the week amid global risk aversion that pushed the safe-haven yellow metal above the $2,000 psychological figure for the first time since August 2020. However, as risk trends bounced, the bullion failed to preserve gains and switched into corrective mode instead. During the subsequent sell-off, the XAUUSD pair dipped to the $1,970 region earlier on Thursday before bouncing marginally. Despite the latest profit-taking, the overall bullish trend in the gold market remains intact as geopolitical tensions surrounding Ukraine continue to rise, adding to the appeal of the safe-haven yellow metal. As such, the bullion could easily get back above $2,000 and target fresh long-term tops around $2,100 should the $2,070 barrier give up. In the immediate term, the prices need to hold above $1,970 in order to avoid a deeper bearish correction.