EURUSD has been losing ground for the sixth session in a row, challenging the 1.0870 zone for the first time in a month
The US dollar notched the fifth bullish session in a row on Wednesday to register a fresh May 2020 high of 99.77 as the yield on 10-year Treasury notes continued to rally amid hawkish Fed. Amid the resurgent safe-haven demand, the USD index is now heading towards the psychological figure of 100.00. On Thursday, the USD index keeps trending north after some short-lived retreat that helped attract fresh buying demand following local profit-taking. Against this backdrop, EURUSD has been losing ground for the sixth session in a row, challenging the 1.0870 zone for the first time in a month. Adding to a more downbeat technical picture, the common currency is trading well below the 20-DMA that capped recovery attempts at the start of the week. On the four-hour timeframes, the RSI is about to enter the oversold territory, with the next bearish target arriving at 1.0845, followed by May 2020 lows in the 1.0800 zone.
The cable keeps struggling for direction, holding in a tightening range even as the greenback rallies nearly across the market. GBPUSD continues to face resistance represented by the 20-DMA that has been capping gains for the cable for two weeks already. It looks like GBPUSD needs an extra impetus to overcome this barrier, currently at 1.3120. On the four-hour timeframes, the prices were rejected from the 20-SMA while the RSI looks directionless in neutral territory, suggesting the recovery potential for the pair is still limited at this stage. On the downside, the cable could derive support from the 1.3000 psychological level if the buying pressure surrounding the US dollar intensifies in the coming days. GBPUSD was last seen changing hands around 1.3077, up less than 0.1% on the day. The immediate technical outlook for the pair remains neutral for the time being.
USDJPY peaked just above the 124.00 figure on Wednesday to finish off local highs. Today, the dollar came under some pressure, flirting with the 123.70 zone during the European hours. Should the USD receive another impetus later in the day, however, the pair could exceed the 124.00 immediate barrier on a daily closing basis, with the overall technical outlook for USDJPY staying upbeat despite the overbought conditions. If the local selling pressure intensifies anytime soon, the pair could derail the 123.00 mark before resuming the ascent. In a wider picture, the buck keeps clinging to the upper end of the extended trading range while also holding well above the key moving averages. In the immediate term, the pair needs to hold above the 123.50 nearest support in order to refrain from another bearish correction.
Gold prices keep consolidating within a tight trading range this week. The XAUUSD pair has been capped by the descending 20-DMA, currently at $1,935. Earlier in the week, the bullion was rejected from local highs around $1,944. The precious metal also derives support from the $1,915 zone that stands on the way towards the $1,900 figure that was briefly derailed last week. However, the bearish potential in gold looks limited at this stage, especially as the prices hold well above the key simple moving averages on the weekly and monthly timeframes. Should the downside pressure build up in the near term amid a firmer dollar, a break below $1,900 may attract buyers that will eventually push the precious metal back above the $2,000 figure last seen one month ago. On the upside, a decisive break above the mentioned daily simple moving average would pave the way towards the $1,950-$1,960 zone that dented the buying pressure last week.