The common currency struggles to settle above 1.0500 as dollar bulls continue to dominate the market
USD index has steadied around the 105.00 figure after yesterday’s drop from local highs above 105.50. EURUSD briefly plunged below 1.0400 before bouncing back towards 1.0500 eventually. However, the shared currency failed to preserve gains in volatile trading to come back under pressure on Friday. In the short term, the path of least resistance remains to the downside, with market focus shifting gradually towards the US ISM Manufacturing PMI report due later in the day. On the four-hour charts, the euro remains well below the key moving averages, with the RSI pointing marginally lower in neutral territory, suggesting the pair could stay on the defensive in the immediate tern as the dollar has retargeted long-term highs after the recent downside correction. As of writing, EURUSD was changing hands around 1.0455, nearly unchanged on the day.
GBPUSD is back on the defensive on Friday after a short-lived bounce witnessed yesterday. The pair failed to challenge the 1.2200 mark during the recent ascent to come back under selling pressure amid the resurgent demand for the greenback. The cable was last seen clinging to the 1.2100 level, a decisive break below which would pave the way towards the 1.2040 intermediate support on the way towards March 2020 lows seen in the 1.1930 area that capped the decline in mid-June. In a wider picture, the pound would stay on the defensive while below the 1.3000 psychological level last seen more than two months ago. The immediate upside target now arrives at 1.2170-1.2180, followed by 1.2200 and the descending 20-DMA that lies just below the 1.2300 mark.
After touching the 137.00 figure for the first time in 24 years earlier this week, USDJPY was rejected from fresh peaks to find support around the ascending 20-DMA last seen one month ago. The moving average, currently at 134.75, helped cap the pressure earlier in the day. The dollar has bounced back above 135.00 since then and was last seen trading around 135.50, down less than 0.2% on the day. On the hourly timeframes, USDJPY is back around the key moving averages, with technical picture turning back upbeat, suggesting the prices may reenter positive territory after some hesitation. In the very near term, the pair is likely to stay above the 20-DMA. Otherwise, the dollar could fall to the 134.25 intermediate support on the way towards retesting the 132.00 zone last seen two weeks ago. On the upside, a decisive daily break above the 136.70 region would pave the way to extending the bullish momentum, with the next key target arriving at 140.00.
Gold price has been losing ground for the fifth session in a row on Friday, struggling to attract demand amid persistent strength surrounding the US dollar. The bullion plunged to mid-May lows around $1,793 earlier today before bouncing marginally. Now that the yellow metal derailed the $1,800 psychological level for the first time in 1.5 months, the near-term technical picture has deteriorated further. Sustained weakness below $1,800 would pave the way towards this year’s lows of $1,780 touched in January while the next relevant support arrives around $1,750. Now that gold is on track for a third straight weekly decline after the worst quarter since early 2021, the path of least resistance remains to the downside. Adding to a more downbeat technical picture, the price is now well below the 100-week SMA, today at $1,841. On the upside, the immediate target now arrives at $1,807, followed by $1,820 and the descending 20-DMA, currently at $1,832.