EURUSD extended gains to fresh one-month highs around 1.0765 before retreating back to the flat-line
The USD index remains on the defensive on Friday, holding below the 102.00 figure during the European trading hours. The greenback lacks demand amid risk-on sentiment that has been dominating global financial markets these days. The USD index fell to fresh one-month lows around 101.40 before bouncing in recent trading, holding just below the flat-line. As such, EURUSD extended gains to fresh one-month highs around 1.0765 before retreating back to the opening levels in recent trading. While the pair is now well above the 20-DMA, the upside potential remains limited as the safe-haven dollar could find a bottom soon. On the four-jour charts, the common currency could retest the 20-SMA should the pressure continue to build in the near term. On the weekly timeframes, however, the euro remains bid, finishing the second bullish week in a row.
GBPUSD keeps trending north for the third session in a row. Earlier in the day, the pair advanced to fresh local highs around 1.2666, but failed to preserve gains and retreated. Should the buck extend recovery in the immediate term, the cable may get back below the 1.2600 mark while the key support now arrives at 1.2430 where the 20-DMA lies. In general, the technical picture looks neutral for the time being, with the directionless daily RSI holding around the 52 figure while the pair is little changed on the day. On the hourly charts, the pound is flirting with the 20-SMA, a break below which would pave the way towards the 100-DMA, currently at 1.2565. Should GBPUSD derail this moving average, the near-term technical picture will deteriorate further. On the upside, a decisive break above 1.2700 would pave the way towards the 1.3000 psychological level last seen more than one month ago.
USDJPY struggles for direction within a tightening trading range these days. On Friday, the pair has settled around the flat-line, flirting with the 127.00 mark while retaining a bearish bias on the weekly timeframes for the third week in a row. As such, the buck continues to retreat gradually from twenty-year highs seen above 131.00 earlier this month. The 127.60 zone, followed by the 128.00 level represent the immediate significant upside target for USD bulls. On the hourly timeframes, the buck is holding around 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 fell marginally on Thursday before regaining a modest upside bias ahead of the weekend. Earlier in the week, the precious metal encountered resistance in the $1,870 area to slip back towards the directionless 200-DMA that has been acting as the immediate support these days. On Friday, the bullion adds 0.43% on the day, flirting with the $1,857 zone during the early European hours. In part, the upside momentum in the gold market is capped by a risk-on tone that dominates global financial markets today. The XAUUSD pair looks set to finish the week with modest gains after a solid bounce from four-month lows during the previous week. Should the bullion exceed the $1,870 zone, the 20-week SMA, today at $1,890, will come back into the market focus for the first time in three weeks. The key near-term target for bulls remains at $1,900, but the metal is unlikely to overcome this barrier anytime soon.