The cable derailed the 1.1800 mark for the first time in over two years
The US dollar index rallied to fresh two-decade highs above the 109.00 figure on Thursday before retreating marginally amid profit-taking. The buck peaked at 109.30 to settle in the 108.50 area in early European deals on Friday. Should the buying pressure puck up again, the prices may target the 110.00 psychological level next. For now, the fact that the buck refrains from a deeper downside correction from fresh peaks suggests that risks remain skewed to the upside. As such, EURUSD briefly dipped below parity towards the 0.9950 zone for the first time since 2002. Now, the pair is back around 1.000 but downside risks continue to persist, suggesting the shared currency is yet to find a bottom. Should the selling pressure intensify further, EURUSD may dip towards 0.9600.
GBPUSD plunged to fresh March 2020 lows around 1.1760 on Thursday before bouncing back above 1.1800 on a daily close. Earlier in the week, the pair briefly jumped to the 1.1970 area but failed to preserve the recovery momentum and saw another sell-off to long-term lows instead. The fact that the daily RSI hasn’t entered oversold territory just yet, suggests the pound is likely to see even deeper losses at this stage before staging a reversal eventually, especially as the prices derailed the 1.1800 mark for the first time in over two years. The pair was last seen changing hands around 1.1835, up 0.11% on the day. On the four-hour timeframes, GBPUSD stays below the descending 20-SMA while the RSI looks neutral, which implies that the UK currency could take a pause before another leg lower. A break below the 1.1760 zone would pave the way towards the 1.1500 figure.
USDJPY saw another rally on Thursday, this time to fresh twenty-four-year highs around 139.40 before retreating marginally amid profit-taking. The pair finished just below the 139.00 figure to add more than 1% on the day. The dollar was last seen changing hands around 138.80, just below the flat-line, refraining from a deeper retreat ahead of the weekend. As such, the pair has approached the 140.00 psychological mark which represents the nearest target for USD bulls. On the shorter-term timeframes, USDJPY shows some corrective signs, but the overall picture remains upbeat, with prices holding above the key moving averages. Should profit-taking continue in the immediate term, the greenback may get back below 138.00, followed by the 136.60 intermediate support zone on the way towards the ascending 20-DMA, today at 136.30. In a wider picture, the overall bullish trend remains intact while above at least the 120.00 mark last seen in March.
Gold prices plunged dramatically, pushing the precious metal below the $1,700 mark for the first time since August 2021. The bullion has bounced slightly since then but stays under pressure today, threatening the mentioned level as bearish bias persists amid the elevated dollar. A break below $1,700 would pave the way towards yearly lows around $1,683. Should this level fail to withstand the pressure, the $1,676 zone will come into the market focus for the first time since March 2021. On the upside, the XAUUSD pair needs to settle above $1,750 in order to shrug off some of the pressure and retarget the descending 20-DMA that has been capping gains for a month already. In the immediate term, the metal is about to get back under $1,700 and refresh long-term lows.