Traders opted to take some profit following another jump to March highs, this time around 105.70
The US dollar has steadied after an early rally on Thursday, holding just below the 105.50 zone as traders opted to take some profit following another jump to March highs, this time around 105.70. Now, the buck lacks the upside momentum but keeps trading well above the 105.00 figure that represents the immediate significant support at this stage. Today, the buck struggles for direction, deriving support from the 105.40 region after the Fed meeting outcome that added to the dollar’s appeal as the central bank delivered a hawkish tone. The dollar looks ready to extend its ascent after some hesitation. A wider technical picture stays positive as well. Should the DXY see renewed bullish pressure, a decisive break above the 105.70 zone would open the way towards fresh March highs. Meanwhile, EURUSD retains a bearish bias on Thursday, staying below the key SMAs that turned back into resistance levels after an earlier sell-off. The pair is changing hands around 1.0650 as of writing, down 0.06% on the day.
The cable found resistance represented by the 20-DMA at the start of the week and has been trending lower since then. Furthermore, the pair fell below 1.2300 to register April lows around 1.2286 on Thursday. The pound struggles to bounce so far despite oversold conditions. Now, the pound holds just below the 1.2300 region, also staying below the key SMAs. During the European deals, the pair has settled in negative territory, struggling to attract demand at this stage. The daily RSI looks bearish in oversold territory, suggesting the pair could stay on the defensive in the immediate term before bouncing. In recent trading, GBPUSD was changing hands around 1.2292, down 0.41% on the day. On the downside, the immediate significant support is now represented by the 1.22275 zone. On the upside, a decisive recovery above 1.2300 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 negative territory on Thursday, holding just below fresh November highs seen around 148.46 earlier in the day. 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, down 0.13% on the day. Now, the greenback needs to challenge the 148.50 region in order to extend the rally. The daily RSI turned slightly lower, staying in neutral territory, suggesting the dollar could see some bearish consolidation in the immediate term before resuming the ascent. 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 $1,947 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 $1,920 zone. Gold was last seen changing hands around $1,924, down 1.18% 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 $1,943 region where the 100-DMA arrives. On the four-hour charts, the XAUUSD pair has settled below the key SMAs while the RSI is pointing lower, painting a mixed technical picture.