The greenback extended the retreat to 97.70 before recovering above 98.00 during the European trading hours
The dollar encountered a barrier around May 2020 highs around 99.40 at the start of the week before turning lower as risk-on tone reemerged across the markets. As a result, the greenback extended the retreat to 97.70 before bouncing back above 98.00 in recent trading. EURUSD refreshed one-month lows around 1.1185 earlier today before reversing south as dollar demand reemerged. The pair erased early gains and could threaten the 1.1100 figure if the downside pressure intensifies in the short term. In this scenario, the common currency may challenge the 110.70 intermediate support zone to trim this week’s gains further. On the four-hour charts, EURUSD is approaching the descending 200-SMA, followed by the 20-SMA, currently at 1.1075. Now, traders’ focus shifts to the key US jobs data due tomorrow. Should the figures surprise to the downside, the selling pressure surrounding the greenback will intensify ahead of the weekend.
GBPUSD keeps flirting with the descending 20-DMA on Thursday, struggling to regain the upside momentum following a strong rejection from the 1.3190 zone at the start of the week. For the time being, however, the pound holds above the 1.3100 figure, a break below which would mark deterioration in the near-term technical picture. On the downside, the intermediate support is represented by this week’s lows registered around 1.3050, followed by November 2020 lows in the 1.3000 area. As long as the prices stay below the descending 200-DMA, today at 1.3560, downside risks continue to persist. On the weekly timeframes, the pair needs to advance to 1.3200 in order to finish in positive territory. However, it looks like the path of least resistance is to the downside at this stage, especially as the dollar proceeded to recovery in recent trading.
USDJPY struggles to regain the upside momentum after ab abrupt plunge from fresh long-term peaks seen above 125.00 at the start of the week. The pair found support in the 121.30 area that has been capping the selling pressure since yesterday. In recent trading, USDJPY turned slightly positive on the day as the greenback bounced across the market. However, it looks like the upside potential is limited at this stage, with the pair flirting with the 122.00 figure as of writing. On the shorter-term timeframes, the RSI is pointing south, which implies that the USD could need a more robust impetus to regain the mentioned level and thus turn positive on the week. On the downside, the immediate support now arrives at 121.70. followed by 121.30 and the 121.00 mark where one-week lows lie. In a wider picture, the broader uptrend remains intact.
Gold prices are holding above one-month lows seen earlier in the week around $1,890. At the start of the week, the precious metal derailed the $1,900 figure for the first time since mid-March as investor optimism ahead of Russia-Ukraine talks pressured the safe-haven bullion. However, as dip buyers emerged, gold prices bounced but still hold below the directionless 20-DMA, currently at $1,953. As such, the XAUUSD pair keeps trading between the 20- and 100-DMAs these days, staying positive on the month despite the recent sell-off. On the daily charts, the yellow metal came under some pressure in recent trading, holding around $1,924 during the European hours. In a wider picture, the XAUUSD pair remains within a broader uptrend that took the prices above the $2,000 figure earlier this month. Furthermore, the prices keep holding well above the 20-month SMA, today at $1,827, adding to a still upbeat technical picture.