The pound looks depressed at the current levels despite the yesterday’s rally that pushed the prices back above 1.3000
The USD index retreats from March 2020 highs seen around 101.00 earlier in the week. The greenback dipped back below the 100.00 area amid profit-taking, while less hawkish comments from Fed officials could have added to a local selling pressure surrounding the US currency. Despite the retreat, the overall bullish tone surrounding the greenback remains intact. The buck edged lower to one-week lows around 99.80 before settling just below 100.00 in recent trading. Against this backdrop, EURUSD rallied above the 1.0900 mark to notch two-week highs around 1.0935. The euro is now flirting with the 20-DMA, but it looks like the common currency could need an extra catalyst to overcome this immediate barrier and target 1.1000 for the first time since early-April.
The cable has once again encountered the 20-DMA that capped gains earlier in the day. As a result, the pair turned slightly negative to settle around 1.3060 during the European hours after an earlier rejection from the 1.3080 zone that capped the way towards 1.3100 along with the mentioned moving average. The pound looks depressed at the current levels despite the yesterday’s rally that pushed the prices back above 1.3000. On the downside, the immediate support now arrives at 1.3040, followed by 1.3000 and the 1.2980 area where November 2020 lows arrive. On the four-hour timeframes, GBPUSD remains stuck between the key moving averages while the RSI looks directionless in neutral territory, painting a neutral near-term technical picture. Should the prices overcome the 20-DMA, a decisive break above 1.3100 would improve the immediate outlook for the pair. However, it looks like the path of least resistance remains to the downside at this stage.
USDJPY peaked at fresh twenty-year highs above the 129.00 handle. The pair extended the ascent to 120.40 before retreating amid a widespread sell-off surrounding the greenback. As a result, the priced have settled below 128.00 on a daily closing basis. However, the dollar refrained from a deeper correction despite the persistent oversold conditions. On Thursday, the pair regained the 128.00 mark to trim recent losses partially. Now, USDJPY needs to hold above the 127.00 figure so that to stay afloat and refresh multi-year highs after a local bearish correction. On the upside, the next major target now arrives at the 130.00 psychological figure that could cap further gains and trigger a more pronounced retreat eventually. On the weekly charts, the pair has been advancing north for the seventh week in a row, looking extremely overbought across the timeframes.
Gold prices struggle to regain the upside momentum after a plunge from more than one-month highs earlier in the week. The XAUUSD pair encountered resistance just below the $2,000 mark that scared off buyers, pushing the prices down to the $1,950 zone. The bullion is now trying to hold above the 20-DMA, today at $1,945, in order to avoid a deeper retreat in the near term. As the XAUUSD pair retreated from the $2,000 handle, the prices have settled in the negative territory on the weekly timeframes, and it looks like the path of least resistance is to the downside for the time being. Gold prices could struggle for some time before regaining the upside bias, with the nearest significant support arriving at $1,920. In a wider picture, the downside potential is limited as long as the yellow metal stays above the ascending 20-week SMA, today at $1,876.