The buck keeps targeting the 104.00 next barrier
The USD finished higher on Tuesday to come under mild selling pressure today as traders opted to take some profit after an ascent to fresh two-month highs. In the previous session, the greenback briefly jumped to fresh mid-June highs in the 103.72 area before retreating slightly. Now, the dollar treads water just below the 103.50 area, looking steady and directionless after the rally. On the downside, the immediate support arrives around 103.20, followed by 103.00 and the 102.80 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 103.50 figure. Now that the dollar is back below this level, fresh drivers could be needed in the near term. Should the DXY see a more intense selling pressure, a break below the 103.30 zone would open the way towards a deeper retreat. Meanwhile, EURUSD is back on the defensive after another failed attempt to overcome the 100-DMA during the previous session. The pair is changing hands around 1.0817 as of writing, down 0.24% on the day.
The cable turned slightly lower on Tuesday, staying under pressure today as dollar demand reemerged. Recovery attempts remain capped by the descending 20-DMA. At the start of the week, the pair bounced marginally as the buying pressure surrounding the US dollar eased. Since then, the pair has dipped but stayed above 1.2700, looking indecisive just below the mentioned SMA. So the pound is yet to regain the key moving average in order to resume the recent bounce. Earlier in the day, the pair encountered a barrier around 1.2765. The daily RSI looks bearish in neutral territory, suggesting the pair could struggle to overcome the mentioned SMA in the near term. In recent trading, GBPUSD was changing hands around 1.2718, down 0.09% on the day. On the downside, the immediate significant support is now represented by the 1.2700 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 mostly correcting lower since last Thursday after peaking at fresh November highs around 146.55. As such, the pair has retreated from the peaks, struggling to challenge fresh highs as the dollar has steadied somehow. In early European deals on Wednesday, USDJPY holds above the 145.00 mark that now represents the immediate support. As the pair still stays well above the 20-DMA, downside risks remain limited in the near term. The dollar was last seen changing hands around 145.46, down 0.29% on the day. Now, the greenback needs to regain the 145.60 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 has deteriorated, with downside risks persisting as prices are now holding below the key SMAs.
The price of gold has been trending higher since Monday, licking its wounds after the recent slide. Still, the metal struggles to attract more decisive demand even as the buying pressure surrounding the US dollar ebbed. Earlier in the week, the precious metal bounced from fresh five-month lows in the $1,884 area to settle just above $1,890 today. Should the pressure reemerge any time soon, the bullion could get back below the $1,885 zone. Gold was last seen changing hands around $1,903, up 0.33% on the day. On the weekly timeframes, the technical picture stays bearish as the metal remains well below 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.