The dollar holds marginally above 103.00, looking ready to extend its bearish consolidation in the near term
The USD stays on the defensive these days, as Treasury yields keep retreating from multi-year highs after weaker-than-expected economic data out of the US. Last week, the greenback briefly jumped to fresh June highs around 104.45 and has been weakening since then. On Thursday, the buck turned positive but struggles to attract more robust demand after four bearish sessions in a row. Earlier in the week, the greenback briefly jumped above the 104.00 handle before retreating. As such, the dollar holds marginally above 103.00, looking ready to extend its bearish consolidation in the near term. On the downside, the immediate support now arrives around 103.00, followed by 102.75 and the 102.50 zone. Still, a wider technical picture stays positive for the time being. Should the DXY see a more intense bearish pressure, a break below the 103.00 zone would open the way towards deeper losses. Meanwhile, EURUSD turned negative, now oscillating between the 100- and 20-DMAs. The pair is changing hands around 1.0897 as of writing, down 0.24% on the day.
The cable looks steady on Thursday after a three-day rally. During the previous session, the pair briefly peaked at 1.2745 before retreating marginally. Since then, the pair has settled above 1.2700, now looking indecisive as the cable is yet to confirm a break above the 20-DMA, today at 1.2700. Earlier in the session, the pair encountered support around the mentioned moving average before bouncing. However, another bullish attempt was capped by the 1.2735 intermediate barrier. As a result, GBPUSD turned slightly negative on the day. The daily RSI looks directionless in neutral territory, suggesting the pair could stay indecisive in the near term. In recent trading, GBPUSD was changing hands around 1.2707, down 0.08% on the day. On the downside, the immediate significant support is now represented by the 1.2650 zone where the 100-DMA arrives. 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 less volatile these days, trading in negative territory on Thursday after peaking at fresh November highs around 146.75 earlier in the week. The pair has retreated from the peaks while staying elevated in recent trading. In early European deals on Thursday, USDJPY holds just below the 146.00 mark that now represents the immediate resistance. As the pair still stays above the 20-DMA, downside risks remain limited in the near term. The dollar was last seen changing hands around 144.81, down 0.29% on the day. Now, the greenback needs to regain the 146.00 mark in order to resume the ascent. The daily RSI turned slightly lower in neutral territory, suggesting the dollar could take a pause in the immediate term before rallying to fresh multi-month highs. On the hourly timeframes, the technical picture has deteriorated somewhat, with downside risks persisting as prices are now holding below the key SMAs while the RSI is pointing lower in neutral territory.
The price of gold had been trending higher since the start of the week, extending last week’s recovery from five-month lows seen in the $1,884 area earlier in the month. During the previous session, the precious metal extended gains to the $1,949 area for the first time since early August. Still, the bullion lacked the momentum to challenge the descending 100-DMA, today at $1,954. Should the pressure reemerge any time soon, the bullion could get back below the 55-DMA, today at $1,931. Gold was last seen changing hands around $1,945, up less than 0.1% on the day. On the weekly timeframes, the technical picture has improved somehow as the metal has approached the 20-SMA for the first time in a month. On the upside, the immediate target is now represented by the $1,950 level, followed by the $1,955 zone where the mentioned 100-day SMA arrives. On the four-hour charts, the XAUUSD pair is holding above the key SMAs while the RSI looks overbought, painting a mixed technical picture.