It looks like EURUSD would lack the impetus to overcome 1.0750 in the near term as the buck remains supported by dip buyers
The dollar came off intraday highs to turn slightly negative on the day as risk sentiment has improved somehow. Earlier in the day, the USD index was treading water around the 102.00 figure after yesterday’s rejection from the 102.45 zone. In recent trading, the downside pressure surrounding the buck intensified. As such, EURUSD is holding above the flat-line, adding 0.35% on the day. The pair is now back above the 1.0700 mark that represents the immediate support for euro bears at this stage. On the four-hour charts, the common currency has once again bounced off the ascending 20-SMA, with the RSI pointing north in neutral territory, suggesting the euro could at least retain a bullish in the near term. The next upside target arrives in the 1.0750 area that capped the momentum earlier in the week. However, it looks like EURUSD would lack the impetus to overcome this barrier in the near term as the buck remains supported by dip buyers for the time being.
GBPUSD has been retaining a bullish bias for the second day in a row on Thursday. The pair advanced above the 1.2600 mark to notch three-week highs before retreating slightly in recent trading. Despite the latest bounce, the bullish potential seems limited at this stage, especially as the prices stay well below the 100-DMA, currently at 1.3115. Still, a daily close above 1.2600 would help improve the near-term technical picture somehow. On the downside, the focus remains on the 20-DMA, currently at 1.2430. On the hourly charts, GBPUSD is now back above the key moving averages while the RSI is pointing higher in neutral territory, suggesting the path of least resistance is to the upside in the immediate term. In a wider picture, the pair stays pressured while below at least the 1.3000 mark last seen in April.
USDJPY came back under pressure after a short-lived bounce witnessed on Wednesday. The pair was rejected from the 127.60 zone earlier in the day to slip below 127.00 during the European hours. As such, the 128.00 level represents the immediate significant upside target for USD bulls. On the hourly timeframes, the buck is now back below the 20-SMA, with the RSI struggles for direction in neutral territory, painting a mixed technical picture. The near-term outlook remains downbeat as long as the pair stays below the 100-DMA, today at 127.40. Should the prices regain this moving average, the 130.00 mark will come back into the market focus. On the downside, failure to hold above the ascending 20-week SMA (today at 121.20) would imply that USDJPY has probably peaked already. Should the prices regain the 127.30 zone in the near term, the 128.00 mark will come back into the market focus.
Gold prices retain a bearish bias since yesterday after failure to overcome the $1,870 resistance zone. The precious metal keep threatening the 200-DMA while also flirting with the 20-DMA at the moment, struggling for direction in early European trading hours. Should the bullion fail to hold above the 200-SMA, the selling pressure may intensify in the near term. As of writing, gold prices were changing hands around $1,846, down less than 0.1% on the day. On the upside, the $1,870 area remains in the market focus while in a wider picture, gold bulls keep targeting the $1,900 mark last seen on May 5. As lomg as the yellow metal stays below this figure, bearish risks continue to persist both in the short and medium term. In the longer-term, XAUUSD could retarget the $2,000 mark if the dollar retreats dramatically in the coming weeks or months.