GBPUSD is back under pressure after two days of gains, threatening a slightly ascending 20-DMA
The dollar is back in the green after yesterday’s rejection from two-week highs. The USD index is flirting with the 102.60 zone during the early European hours as Treasury yields rebounded back above the 3% mark. Should risk aversion reemerge later in the day, the safe-haven US currency may see a more robust ascent, with the key near-term target arriving at 103.00. As such, the EURUSD pair fell back below 1.0700 earlier in the day before rebounding back to the flat-line in recent trading. The fact that the pair managed to hold above yesterday’s lows seen around 1.0650 suggests downside risks are limited for the time being. Also on the positive side, the shared currency keeps holding above the ascending 20-DMA, today at 1.0630, since May 20. The near-term outlook looks neutral-to-upbeat while above this moving average.
GBPUSD is back under pressure after two days of gains, threatening a slightly ascending 20-DMA that arrives just below the 1.2500 figure. The pair was last seen changing hands around 1.2535, down 0.43% on the day. On the upside, the 1.2600 figure remains in the market focus, capping gains for the cable since last week. On the four-hour charts, GBPUSD remains volatile while oscillating around the key simple moving averages. The prices bounced slightly in recent trading, but the recovery potential looks too modest to bet on regaining upside bias during the New York trading session. For the time being, the outlook for the pair looks neutral-to-bearish while in a wider picture, the pound remains within a strong bearish trend, holding just above two-year lows seen in May around 1.2150. The downtrend remains intact while below the descending 200-DMA, today around 1.3300.
USDJPY keeps rallying these days after finding a local bottom below 127.00 in late-May. The pair extended the ascent to fresh twenty-year highs on Tuesday to reach the 133.85 mark and was last seen clinging to the upper end of the trading range, up 0.89% on the day. As a result, the daily RSI climbed into overbought territory and continues pointing north, suggesting the pair could retain bullish tone in the near term despite the overbought conditions. Adding to constructive technical picture, USDJPY is holding well above the key moving averages both in the short- and longer-term timeframes. On the hourly charts, the pair seems to be losing some bullish momentum, with the RSI turning lower in overbought territory, but the downside potential looks limited at this stage.
Gold prices struggle for direction while staying above both the 20- and 200-DMAs. The precious metal has settled around $1,850 on Wednesday, staying mostly on the defensive since last week’s rejection from a local high of $1,874. In the immediate term, the bullion needs to overcome the $1,855 zone in order to stay afloat and retarget the $1,900 psychological level eventually. On the downside, the immediate support arrives at $1,841 where the mentioned moving averages converge. Downside risks are limited while above this zone, albeit the daily RSI is pointing slightly lower in neutral territory, suggesting the bullion could continue to struggle in the near term. In a wider picture, the XAUUSD pair keeps flirting with the 100-week SMA, staying relatively steady after recovery from a plunge below $1,800 last month.