Should the selling pressure surrounding the common currency intensify anytime soon, the euro could threaten the 1.0960 support zone
The dollar retained its upside momentum to climb back to local highs just below the 99.00 figure that capped gains at the start of the week. The greenback rallied as the 10-year US Treasury yield surpassed 2.41% for the first time since May 2019 amid more hawkish signals from Fed officials after the central bank last week raised interest rates for the first time since 2018. On Thursday, the index is treading water around 98.80, adding 0.16% on the day. As such, EURUSD dipped to the 1.0970 before trimming intraday losses in early European hours. As the pair now holds below the 1.1000 figure, downside risks seem to be prevailing at this stage. Should the selling pressure surrounding the common currency intensify anytime soon, the euro could threaten the 1.0960 support zone that has been capping losses this week. On the upside, decisive recovery above the descending 20-DMA, currently at 1.1025, would somehow ease the short-term pressure.
GBPUSD failed to challenge the 1.3300 figure on Wednesday and has been losing ground since then. In the process, the pair derailed the 20-DMA and extended losses to the 1.3155 zone before correcting slightly higher in recent trading. Despite the cable refrains from a more pronounced retreat at the moment, it looks like the prices could target the 1.3100 level next if the buying pressure surrounding the US dollar persists. On the four-hour charts, GBPUSD is now stuck between the 100- and 20-SMAs while the RSI is pointing slightly higher, painting a mixed short-term technical picture. On the upside, the immediate resistance now arrives at 1.3230, followed by the 1.3260 area and the 1.3300 figure where this week’s highs lie. In a wider picture, the pound keeps struggling marginally above November 2020 lows registered at 1.3000 earlier this month, with bearish trend intact as long as the prices stay below the 1.3600 figure last seen in February.
USDJPY keeps rallying despite the overbought conditions. The pair advanced to fresh multi-year highs around 121.75 for the first time since late 2015. Now that the 121.00 figure acts as support, it looks like the greenback could target the 122.00 next barrier. On the other hand, in view of the deeply overbought conditions, a sustained rise above this hurdle is unlikely. In other words, the dollar could attract profit-taking around 122.00 and retreat partially after a major advance. On the hourly charts, however, the strong upside momentum persists, signaling the pair’s readiness to at least hold onto the latest gains. On the downside, the nearest support now arrives at 121.40, followed by the 121.00 mark. On the weekly timeframes, the pair looks set to finish the third bullish week in a row, holding well above the ascending 20-SMA, currently at 115.15.
The XAUUSD pair bounced off local lows seen around $1,910 earlier in the week, retaining a bullish bias early on Thursday. The bullion advanced to the 20-DMA that has been capping the upside momentum these days. Should this moving average give up anytime soon, a decisive break above $1,950 would pave the way towards the $1,955 immediate local resistance, followed by the $1,970 zone. In a bullish scenario, the XAUUSD pair could overcome the mentioned moving average, today at $1,950. Otherwise, the precious metal would be once again rejected from the 20-DMA and could get back below the $1,925 region, followed by this week’s lows around $1,910. Meanwhile, the key short-term support is represented by the $1,900 figure that was briefly derailed last week. As long as the prices stay above this level, bearish risks are limited at this stage.