The USDJPY pair is back on the offensive after the yen’s short-lived recovery
EURUSD
The US dollar looks resilient on Wednesday, retaining a modest bullish bias since yesterday. Still, the buck lacks the upside momentum after solid gains seen last week when the prices surged to fresh multi-month highs around 105.15. During the previous session, the greenback failed to finish above the 105.00 figure that represents the immediate upside target at this stage. Today, the buck has settled in positive territory, deriving support from the 104.50 zone ahead of the US CPI report that will set the tone for the currency later in the day. The dollar looks ready to extend its ascent after the recent profit-taking. On the downside, the immediate support now arrives around 104.50, followed by the 104.10 zone. A wider technical picture stays positive as well. Should the DXY see a more intense bullish pressure, a decisive break above the 105.00 zone would open the way towards fresh March highs. Meanwhile, EURUSD turned lower on Wednesday, holding below the key SMAs that turned back into resistance levels after an earlier sell-off. The pair is changing hands around 1.0738 as of writing, down 0.12% on the day.
GBPUSD
The cable bounced at the start of the week, but failed to extend the ascent and came under renewed pressure that persists for a second session in a row on Wednesday. Furthermore, earlier in the session, the pair briefly fell to 1.2440 for the first time since June before bouncing marginally amid oversold conditions. Now, the pound tries to settle above the 1.2455 region in order to get back above the 1.2500 figure. During the European deals, the pair has settled around the lower end of the extended trading range, looking ready to further distance itself from the key SMAs. The daily RSI looks downbeat in neutral territory, suggesting the pair could see more losses in the immediate term. In recent trading, GBPUSD was changing hands around 1.2457, down 0.21% on the day. On the downside, the immediate significant support is now represented by the 1.2400 zone. On the upside, a decisive recovery above 1.2500 would pave the way to a more sustained bounce.
USDJPY
The USDJPY pair is back on the offensive after the yen’s short-lived recovery, trading in positive territory on Wednesday after peaking at fresh November highs around 147.87 last week. The pair has retreated from the peaks while staying elevated in recent trading. In European deals on Wednesday, USDJPY holds above the 147.00 zone that now represents the immediate support level. 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 147.28, up 0.14% on the day. Now, the greenback needs to regain the 147.50 region in order to retarget fresh multi-month highs. The daily RSI turned back higher in neutral territory, suggesting the dollar could see more buying pressure in the immediate term before rallying to fresh tops. On the hourly timeframes, the technical picture stays positive, with upside risks persisting as prices are now holding above the key SMAs while the RSI looks neutral for the time being.
XAUUSD
The price of gold has been under pressure since Tuesday, struggling to extend the recent recovery that was capped by the 55-DMA. Last week, the precious metal extended losses to the $1,915 area where the key SMAs capped the decline. During the previous session, XAUUSD briefly fell to $1,907 before bouncing slightly. Now, the bullion holds around the lower end of the extended trading range, lacking the momentum to regain the key SMAs that turned into resistance levels after yesterday’s sell-off. Should the pressure intensify any time soon, the bullion could threaten the $1,900 psychological level. Gold was last seen changing hands around $1,910, down 0.1% on the day. On the weekly timeframes, the bullion still looks vulnerable as the metal remains under the 20-SMA that capped gains last week. On the upside, the immediate target is now represented by the $1,918-$1,920 region where the 20 and the 100-DMA arrive, followed by the $1,930 level (55-DMA). On the four-hour charts, the XAUUSD pair has settled below the key SMAs while the RSI has turned slightly lower, painting a still bearish technical picture.
