EURUSD retains a modest bullish bias, but still holding below the key SMAs
The US dollar looks steady on Wednesday, holding just above the 105.00 figure that was briefly derailed during the previous session. The buck lacks the upside momentum after solid gains seen last week when the prices surged to fresh multi-month highs just below the 105.50 zone. The greenback stays above the 105.00 figure that represents the immediate support at this stage. Today, the buck struggles for direction, deriving support from the 105.08 mark ahead of the Fed meeting outcome that the tone for the currency later in the week. The dollar looks ready to extend its ascent after some hesitation. On the downside, the immediate support now arrives around 105.00, followed by the 104.70 zone. A wider technical picture stays positive as well. Should the DXY see renewed bullish pressure, a decisive break above the 105.50 zone would open the way towards fresh March highs. Meanwhile, EURUSD retains a modest bullish bias on Wednesday, but still holding below the key SMAs that turned back into resistance levels after an earlier sell-off. The pair is changing hands around 1.0690 as of writing, up 0.12% on the day.
The cable bounced at the start of the week, but failed to extend the ascent and came under renewed pressure that dominates these days. Furthermore, earlier in the session on Wednesday, the pair briefly fell to 1.2332 for the first time since May before bouncing marginally amid oversold conditions. Now, the pound holds just below the 1.2460 region, still staying below the 200-DMA that arrives at 1.2430. During the European deals, the pair has settled in negative territory, struggling to attract demand at this stage. The daily RSI looks directionless, flirting with oversold territory, suggesting the pair could stay on the defensive in the immediate term. In recent trading, GBPUSD was changing hands around 1.2358, down 0.26% on the day. On the downside, the immediate significant support is now represented by the 1.2330 zone. On the upside, a decisive recovery above 1.2400 would pave the way to a more sustained bounce.
The USDJPY keeps adding to gains these days after failed recovery attempts in the Japanese yen. The dollar is trading in positive territory on Wednesday, holding at fresh November highs around 148.16. The pair has settled around the peaks, staying elevated despite overbought conditions. As such, USDJPY holds above the 148.00 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 148.13, up 0.2% on the day. Now, the greenback needs to challenge the 148.80 region in order to extend the rally. The daily RSI keeps pointing higher, approaching overbought territory, suggesting the dollar could see more buying pressure in the immediate term before correcting lower. On the hourly timeframes, the technical picture looks mixed, with upside risks persisting as prices are now holding above the key SMAs while the RSI is correcting lower in overbought territory.
The price of gold failed to shrug off the renewed pressure, trading with bearish bias since peaking at $1,937 during the previous session. After a slide from local highs, the precious metal dipped back below the 55-DMA that turned back into resistance. Now, the bullion holds around the lower end of a local trading range, lacking the momentum to regain the $1,930 zone that represents the nearest barrier for buyers. Should the intensify reemerge any time soon, the bullion could threaten the $1,925 zone where the 20- and 200-DMAs converge. Gold was last seen changing hands around $1,928, down 0.21% on the day. On the weekly timeframes, the bullion still looks vulnerable as the metal remains under the 20-SMA that continues to cap gains. On the upside, the immediate target is now represented by the $1,937 region, followed by the $1,944 region where the 100-DMA arrives. On the four-hour charts, the XAUUSD pair has settled above the key SMAs while the RSI keeps pointing lower, painting a mixed technical picture.