GBPUSD remains vulnerable to further losses, especially as the prices still stay well below the key SMAs on the weekly timeframes
The dollar stays pressured ahead of the weekend after a solid dip witnessed on Thursday. The USD index has settled just below the 103.00 mark, refraining from a deeper retreat for the time being despite some improvement in risk sentiment. So far, dollar’s dynamics looks like a modest consolidation after a rally towards multi-year highs. In other words, the bullish trend remains intact despite the waning safe-haven demand for the US currency. Meanwhile, EURUSD briefly exceeded the 1.0600 mark for the first time in two weeks, struggling to extend the ascent on Friday as the selling pressure surrounding the buck has abated. In the immediate term, the common currency needs to hold above a slightly descending 20-DMA, currently at 1.0530, in order to preserve the recent gains and make fresh bullish attempts. On the weekly charts, the technical picture has improved somehow as the RSI managed to escape the oversold territory and was last seen pointing north.
The cable regained the upside bias on Thursday as the dollar fell across the market. As a result, the pair advanced to 1.2525 but failed to preserve gains and finished below 1.2500. On Friday, the pound is holding just above the 20-DMA, struggling to extend the ascent, with the 1.2500 mark continuing to act as the immediate target for GBP bulls. On the downside, the 1.2320 zone remains in the market focus, as bearish risks look limited while above this area. On the four-hour charts, the technical picture looks neutral as the prices have settled slightly above the key moving averages while the RSI is directionless around the 60 figure. Despite the recent bounce from long-term lows, GBPUSD remains vulnerable to further losses, especially as the prices still stay well below the key SMAs on the weekly timeframes. On the positive side, the cable looks like preparing for another bull as long as the prices hold around the 20-DMA.
USDJPY looks set to finish the second bearish week in a row. The pair failed to hold above the 20-DMA earlier in the week, staying on the defensive these days as the Japanese yen has attracted some demand around twenty-year highs while the US dollar looks depressed across the board. The pair dipped to the 127.00 support zone for the first time this month to bounce marginally on Friday. The buck was last seen changing hands just above 128.00, up 0.29% on the day. On the hourly timeframes, USDJPY is now targeting the 100-SMA, currently at 128.70, followed by the 129.10 zone where the 200-SMA arrives. In the immediate term, the pair needs to overcome both moving averages in order to shrug off the recent weakness and retarget long-term peaks seen last week above the 131.00 level. On the downside, failure to hold above 128.00 would pave the way towards the 127.50 zone, followed by the mentioned monthly lows around the 127.00 figure.
Earlier in the week, the XAUUSD pair plunged to fresh 2022 lows around $1,786 before bouncing. The bullion has regained both the $1,800 mark and the 200-DMA since then, looking set to finish in green territory for the first time in five weeks. On Friday, gold prices were holding just below the 20-DMA, struggling to regain the $1,850 intermediate resistance on the way towards the $1,900 psychological level that capped bullish attempts earlier this month. The XAUUSD pair still looks vulnerable, but the outlook improves gradually, with dollar dynamics in focus. Now, gold needs to overcome a slightly ascending 100-week SMA on a daily and weekly closing basis. On the downside, the immediate support arrives at $1,835, followed by $1,810. In a wider picture, the prices needs to overcome the $1,900 figure in order to see more robust gains eventually.