The precious metal threatens the $1,900 psychological level, struggling to attract sustained demand
The USD turned lower on Wednesday after a four-day ascent. Earlier in the day, the greenback briefly jumped to the 103.28 area before retreating back to the 103.00 figure. Now, the dollar treads water around the psychological level, trading in negative territory on the daily charts. On the downside, the immediate support arrives around 102.80, followed by 102.40 and the 102.00 zone. Despite some correction, the overall technical picture stays positive for the time being even as the buck has so far failed to confirm a break above the 103.00 figure. Now that the dollar is back around this level, fresh drivers could be needed in the near term. Should the DXY see a more intense selling pressure, a break below the 102.80 zone would open the way towards a deeper retreat. Meanwhile, EURUSD bounced marginally, challenging the 100-DMA in early European deals. The pair is changing hands around 1.0926 as of writing, up 0.2% on the day.
The cable has been trending north since a brief break to the 100-DMA at the start of the week. The pair dipped to late-June lows around 1.2616 before bouncing as the buying pressure surrounding the US dollar eased. Since then, the pair has settled around 1.2750, looking indecisive ahead of the 20-DMA. So the pound is yet to regain the key moving average in order to confirm the latest breakout. Earlier in the day, the pair derived support from the 1.2685 region. As a result, the daily RSI turned positive in neutral territory, suggesting the pair could see some extra gains in the near term. In recent trading, GBPUSD was changing hands around 1.2746, up 0.34% on the day. On the downside, the immediate significant support is now represented by the 1.2660 zone, followed by the 1.2620 level. On the upside, a decisive break above 1.2750 would pave the way to a more sustained recovery. In a wider picture, the pound has been staying within a bullish trend since last September.
The USDJPY pair has been flat since yesterday after peaking at fresh November highs around 145.85 at the start of the week. As such, the pair has settled in a tight range, deciding on the further direction as the upside pressure surrounding the USD has eased somehow. In early European deals on Wednesday, USDJPY holds above the 145.00 mark that now represents the immediate support. As the pair still holds well above the 20-DMA, downside risks remain limited in the near term. The dollar was last seen changing hands around 145.49, down 0.05% on the day. Now, the greenback needs to confirm a break above the 145.50 mark in order to resume the ascent. The daily RSI turned slightly lower in neutral territory, suggesting the dollar could see fresh selling pressure in the immediate term before demand reemerges. On the hourly timeframes, the technical picture looks neutral, albeit downside risks persist as prices are now challenging the 20-SMA.
The price of gold turned slightly higher on Wednesday after the recent slide, struggling to attract more decisive demand even as the buying pressure surrounding the US dollar ebbed. Earlier in the session, the precious metal bounced from the $1,900 psychological level to settle around $1,905, with prices staying vulnerable. Should the pressure reemerge any time soon, the bullion could get back below the $1,900 zone that represents the immediate support at this stage. Gold was last seen changing hands around $1,904, up 0.3% on the day. On the weekly timeframes, the technical picture keeps deteriorating as the metal keep distancing itself from the 20-SMA. On the upside, the immediate target is now represented by the $1,915 level, followed by the $1,935 zone. On the four-hour charts, the XAUUSD pair is holding below the 20-SMA while the RSI looks bullish, painting a mixed technical picture.