The euro failed to regain the 1.00 mark during the recent bounce, holding below parity on Wednesday
EURUSD
The dollar is slightly firmer but gains are too modest after yesterday’s rejection from the 109.30 zone. The USD index has settled below the 109.00 figure, lacking demand despite the persisting risk-off environment. EURUSD extended losses to fresh multi-year lows around 0.9900 before bouncing partially amid oversold conditions. The euro failed to regain the 1.00 mark during the recent bounce, holding below parity ahead of the European Central Bank’s accounts of its latest monetary policy discussions. Should the 0.9900 mark give up, the shared currency will see fresh multi-year lows in the coming days. The pair was last seen changing hands around 0.9946, down 0.21% on the day. On the four-hour charts, the RSI rebounded from oversold territory while the prices stay well below the key descending SMAs, painting a still bearish short-term technical picture. Now, the euro needs to regain the 1.00 mark to shrug off some of the selling pressure at this stage.
GBPUSD
GBPUSD bounced on Tuesday after four bearish sessions in a row. After the initial dip towards 1.1717 for the first time since March 2020, the pair jumped to close above 1.1800 to trim recent losses. On Wednesday, however, the pair struggles to extend the rebound, oscillating around the flat-line as the bulls refrain from more decisive trades at this stage.The pound was last seen changing hands around 1.1823, down less than 0.1% on the day. As such, the recovery potential looks limited at this stage, especially as the pair stays well below the 20-DMA, today at 1.2060. On the four-hour charts, the bearish momentum persists even as the RSI has recovered from oversold territory. On the longer-term timeframes, the technical picture stays bearish as well, with the prices holding below the key weekly SMAs while the RSI keeps pointing lower.
USDJPY
USDJPY advanced to one-month highs around 137.70 earlier on Tuesday before retreating amid some profit-taking. The pair briefly dipped to 135.80 to finish around 136.75. Still, the dollar continues to cling to the upper end of the extended trading range, holding well above the 20-DMA, today at 134.50. Earlier in the month, the prices managed to hold above the 100-SMA, adding to a resilient technical picture. In the near term, USDJPY needs to regain the 137.00 mark for the bullish momentum to persist. A decisive break above the mentioned one-month highs would bring long-term tops above 139.00 back into the market focus. In case of a deeper downside correction, the nearest support should be expected around 136.00, followed by 135.80 and the 135.60 figure. As of writing, the greenback was changing hands around 136.48, down 0.22% on the day.
XAUUSD
Gold price bounced on Tuesday after a negative start to the week. The yellow metal dipped to fresh late-July lows around $1,727 before attracting some demand to turn positive. The bullion also retains a bullish bias on Wednesday, challenging the $1,750 zone during the European hours. Despite the relief rally amid some retreat in the USD, it looks like the metal could stay on the defensive in the coming days. Should the bullion fail to hold above $1,750 in the short term, the nearest downside target near the $1,730 region will come back into the market focus. On the upside, recovery above the 20-DMA, now at $1,770, is critical for any substantial recovery while the key bullish target for short-term buyers arrives at $1,800. On the weekly timeframes, the XAUUSD pair stays well below the key SMAs while the RSI turned directionless in neutral territory, painting a mixed technical picture. Overall outlook remains negative while below the $1,800 mentioned barrier last seen nine days ago.
