After a pause, the USD index could resume its ascent towards 107.50 once the buying pressure reemerges
During the previous session, the US dollar rallied to fresh multi-month tops before retreating marginally. On Wednesday, the USD index is holding around the 107.00 psychological level as buying interest has waned somehow around fresh November highs registered around 107.35 yesterday. Now, the buck seems not to have enough upside momentum to challenge fresh cyclical tops in the immediate term, even as the DXY keeps trading around 107.00. The greenback keeps deriving support from a hawkish Fed that adds to the dollar’s safe-haven appeal. After a pause, however, the USD index could resume its ascent towards 107.50 once the buying pressure reemerges. A wider technical picture stays positive. Should the DXY see further bullish pressure, a decisive break above the 107.35 zone would open the way towards fresh multi-month highs. Meanwhile, EURUSD tries to bounce from late-2022 lows seen at 1.0448 during the previous session. The pair is changing hands around 1.0482 as of writing, up 0.16% on the day.
The cable found support around fresh March lows around 1.2035 earlier in the day and has been recovering since then. The pair has settled around 1.2100 in early European deals, still staying on the defensive after a brief rally towards 1.2270 last week. The pound is trending higher now, but still lacks the momentum to stage a more robust bounce despite oversold conditions. Now, the pound holds slightly above the lower end of the extended trading range, also staying below the key SMAs. During the European deals, the pair has settled in positive territory, trying to attract more demand at this stage. The daily RSI points slightly higher in oversold territory, suggesting the pair could see some further relief in the immediate term before resuming the downside move. In recent trading, GBPUSD was changing hands around 1.2095, up 0.17% on the day. On the downside, the immediate significant support is now represented by the 1.2050 zone. On the upside, a decisive recovery above 1.2100 would pave the way to a more sustained bounce.
The USDJPY pair keeps adding to gains these days as the Japanese yen still struggles to attract demand. The dollar holds slightly positive during the European trading hours on Wednesday, holding marginally below fresh October 2022 highs seen around 150.15 during in the previous session. The pair has settled just above the 149.00 figure, staying elevated despite overbought conditions. As the pair still stays above the ascending 20-DMA, downside risks remain limited in the near term. The dollar was last seen changing hands around 149.01, up 0.01% on the day. Now, the greenback needs to make a decisive break above the 150.00 region in order to extend the rally. The daily RSI turned directionless, staying in neutral territory, suggesting the dollar could see some consolidation in the immediate term before rallying to fresh tops. On the hourly timeframes, the technical picture has improved somewhat since yesterday, with upside risks persisting even as prices are now slightly below the 20-SMA while the RSI is trending higher in neutral territory.
The price of gold keeps losing ground for the eights session in a row, trading with bearish bias since peaking at $1,947 earlier in the month. After a slide from local highs, the precious metal dipped back below the key SMAs that turned back into resistance levels. Now, the bullion holds around the lower end of a local trading range, further distancing itself from the $1,900 zone. Should the pressure intensify any time soon, the bullion could threaten the $1,800 zone for the first time since March. Gold was last seen changing hands around $1,822, down 0.21% on the day. On the weekly timeframes, the bullion now looks even more vulnerable as the metal dipped below the key SMAs. On the upside, the immediate target is now represented by the $1,830 region, followed by the $1,850 zone. On the four-hour charts, the XAUUSD pair has settled below the key SMAs while the RSI looks directionless, painting a mostly negative technical picture.