The shared currency needs to regain parity in order to avoid another sell-off on the near term
The US dollar surged to fresh twenty-year highs around the 110.00 figure on Thursday to come under some selling pressure today as traders proceeded to profit-taking after another spectacular rally. The USD index slipped to the 109.30 zone, staying on the defensive during the early European hours. Strong US jobs data could give a lift to the buck at the end of the trading week. As such, the euro may struggle to get back above parity on a daily and weekly closing basis. EURUSD was last seen changing hands just below 0.10, adding 0.5% on the day. The shared currency needs to regain parity in order to avoid another sell-off on the near term. In a wider picture, the pair keeps clinging to the lower end of the trading range, with bearish trend staying intact. The European currency could refrain from a deeper retreat towards fresh long-term lows in the near term, but any sustained recovery is still unlikely at this stage.
The cable bounced marginally after a five-day losing streak. The pair extended the decline towards fresh March 2020 lows around 1.1500 and was last seen changing hands around 1.1567, adding 0.19% on the day. As such, the bearish potential persists at this stage, especially as the pair keeps distancing itself from the descending 20-DMA, today at 1.1885. The immediate upside target now arrives at 1.1600. On the four-hour charts, the bearish momentum has eased somehow as the RSI holds in neutral territory, suggesting the selling momentum could slow down at this stage. On the longer-term timeframes, the technical picture stays negative, with the prices holding below the key weekly SMAs while the RSI keeps pointing lower despite the oversold conditions.
USDJPY has been advancing north for the sixth session in a row on Thursday, refreshing more than twenty-year highs beyond the 140.00 figure. The pair advanced towards the 140.40 zone and was last seen clinging to the upper end of the extended trading range. As such, the pair keeps holding well above the ascending 20-DMA, today at 136.36 while the daily RSI is approaching the overbought territory. The dollar was last seen trading up 0.10% on the day. In the near term, USDJPY needs to hold above the 140.00 mark for the overall bullish momentum to persist. A decisive rally above the mentioned highs would bring fresh long-term tops into the market focus. The next major target for USD bulls now arrived at 141.00. On the downside, the prices could get back below 139.00 in case of profit-taking.
Gold prices saw a three-day losing streak that has brought the prices to nearly 1.5-month lows around $1,688. The technical picture deteriorated further after the precious metal derailed the $1,700 figure for the first time since July 21, with the outlook on the weekly timeframes looking bearish. After the latest sell-off, the XAUUSD pair bounced on Friday due to a combination of dip-buying strategy and a weaker dollar. The yellow metal regained the $1,700 figure in recent trading but is yet to get back above the $1,710 zone at least in order to see more robust recovery. The daily RSI reversed north, bouncing from the 30 mark, suggesting the prices could retain a bullish bias in the near term. Should the selling pressure reemerge any time soon, XAUUSD would easily fall back below $1,700 and could threaten the $1,680 zone that helped cap the decline in July.