The euro touched a fresh low of 1.007 before bouncing back above 1.0100 in recent trading
The US dollar extends its winning streak, rallying nearly across the market. The USD index climbed to fresh two-decade highs around 107.80, now targeting the 108.00 mark as bulls continue to dominate the market. As such, EURUSD plunged below the 1.100 figure, coming closer to parity as worries about a gas crunch in Europe persist, pressuring the shared currency along with the usual combination of risk sentiment and Fed-ECB policy differential. The pair touched a fresh low of 1.007 before bouncing back above 1.0100 in recent trading, still staying deeply in negative territory. On the four-hour timeframes, the pair remains capped by the descending 20-SMA while the RSI is turning flat in the oversold territory, suggesting the price may stage a more pronounced bounce from the 1.00 psychological level. Otherwise, the euro will continue to bleed, targeting the 0.9700 zone.
The cable plunged to March 2020 lows below 1.1900 earlier in the week before bouncing on Thursday. Today, the pair briefly exceeded the 1.2000 psychological level but failed to preserve gains and came under renewed selling pressure that took the prices to the 1.1920 area. The cable was last seen changing hands around 1.1950, down 0.6% on the day. Should the prices manage to regain the 1.2000 psychological level on a daily closing basis, the immediate selling pressure surrounding the British currency will ease marginally. However, the overall technical picture remains bearish, with downside risks persisting both in the shorter-term and weekly timeframes. Also on the negative side, the daily RSI has reversed back north while on the hourly charts, the pair has slipped below the 20-SMA, signaling lack of improvement in the immediate picture. Should GBPUSD stay below 1.2000 on a daily closing basis, the 1.875 zone could be threatened next.
USDJPY briefly jumped to the 136.35 zone earlier in the week before trimming gains. The dollar has been holding steadily above the 20-DMA since then, with modest bearish slope prevailing ahead of the weekend. Still, the greenback remains on the offensive, holding just below the 136.00 mark during the European hours. For now, the path of least resistance remains to the upside, especially as the daily RSI remains in neutral territory. Should the dollar come under pressure in the near term, the nearest support is expected at 135.50, followed by the mentioned moving average, today at 135.30. On the hourly charts, the pair is holding above the key moving averages, adding to an upbeat technical picture. As such, the downside potential looks limited, with the key near-term support arriving at 134.25. In a wider picture, the overall bullish trend remains intact while above at least the 120.00 mark last seen in March.
Gold prices stay pressured these days, struggling to attract demand at late-September lows below $1,740 as the US dollar remains the preferred safe-haven as recession risks keep growing. The precious metal gave up more than $300 since the Federal Reserve began raising interest rates in March. So, any strength in gold must be treated with caution as the downside pressure could intensify at any point against the backdrop of a strong dollar. The non-yielding metal could next target the $1,721 zone that represents the last line of defense ahead of the $1,700 mark last seen nearly one year ago. On the upside, the nearest barrier arrives at $1,750, followed by $1,770 and the $1,800 figure. The latter is the key for recovery in the short term. However, the path of least resistance remains to the downside for the time being. In a broader picture, the XAUUSD pair is finishing the fourth bearish week in a row, shedding 3.70% since Monday.
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