A weaker dollar could pave the way for the euro above the 1.0800 mark last seen in late-April
The dollar stays under pressure on Friday after yesterday’s break below the 102.00 figure. The USD index briefly dipped to 101.65 earlier in the day before bouncing in recent trading, thus turning slightly positive on the day. Traders are looking to the US Labour Department’s jobs report for confirmation of a slowdown in the employment market. Should the figures come in lower than expected, the greenback may see a solid retreat across the market to finish the third consecutive week lower. EURUSD struggles for direction just below 1.0750 during the European hours, with traders staying cautious ahead of job market data. A weaker dollar could pave the way above the 1.0800 mark last seen in late-April. The intermediate barrier arrives at this week’s highs around 1.0785. On the downside, the pair needs to hold above the 20-DMA, currently at 1.0600, in order to stay afloat.
GBPUSD bounced from the 20-DMA earlier in the week during the recent slide to turn positive on Thursday amid widespread profit-taking surrounding the greenback. The pair found a short-term bottom around 1.2460 to get back above 1.2500. Furthermore, the pound managed to confirm the latest recovery on a daily closing basis. Also on the positive side, the daily RSI keeps pointing slightly higher in neutral territory while the prices are holding above both the mentioned moving average and the 1.2550 zone during the European hours on Friday, suggesting GBPUSD could retest the 1.2600 handle in the near term. Otherwise, the market focus would shift back to the 20-DMA that has been capping losses since May 20. On the four-hour timeframes, the technical picture looks constructive, but the pair is yet to overcome the key moving averages that could prevent the prices from a more sustained recovery.
Earlier in the week, USDJPY rallied above the 130.00 figure for the first time since mid-May and has been clinging to the upper end of the trading range since then. The pair extended gains to 130.23 yesterday before retreating slightly. Still, the downside pressure seems to be limited at this stage, with the greenback holding around 130.00 while also staying above the 20-DMA at this stage. It looks like the pair could see another retreat before regaining the 130.00 barrier eventually, with the overall outlook for the US currency looking upbeat in a wider picture. On the hourly charts, USDJPY is now back above the ascending 20-SMA while the RSI is pointing north, which implies that the buck could stay afloat in the near term. The nearest support now arrives at 129.70, followed by 129.40 and the mentioned 20-DMA, currently at 128.65.
Following two days of gains, gold prices advanced to $1,874 for the first time since May 9 earlier on Friday. However, the precious metal failed to preserve gains and retreated back into negative territory eventually. The XAUUSD pair has settled just above the $1,860 zone since then, refraining from a deeper retreat for the time being. The outlook for the precious metal has improved somehow after a strong bounce from the levels below $1,830 earlier in the week. In the process, the bullion regained both the 20- and 200-DMAsб now targeting the 100-DMA, today at $1,888. Should the pair regain a bullish bias in the near term, a decisive break above this moving average will pave the way towards the $1,900 psychological level last seen nearly one month ago. On the downside, the bullion may have found a bottom around $1,785 in mid-May while the immediate support now arrives in the $1,840 region where the mentioned 20- and 200-DMAs converge.