The common currency keeps recovering for the sixth session in a row due to a weaker dollar
The dollar stays pressured on Wednesday, extending its pullback from the recent November highs seen around 107.35 last week. Earlier in the week, the USD index derailed the 106.00 figure that turned into resistance. Today, the DXY is holding around 105.70 as selling interest persists amid the renewed retreat in the US Treasury yields. As such, the buck keeps distancing itself from cyclical tops and could threaten the 105.00 figure if the pressure keeps building in the near term. The greenback is now on the defensive amid more dovish hints from the Fed speakers along with lower yields. A wider technical picture, however, stays positive so far. Should the DXY see further bearish pressure, a decisive break below the 105.50 figure would open the way towards fresh local lows. Meanwhile, EURUSD keeps recovering for the sixth session in a row. The pair is changing hands around 1.0600 as of writing, unchanged on the day after a brief jump to 1.0628 earlier in the session.
The pound found support around fresh March lows around 1.2035 last week and has been recovering since then. The pair has settled above 1.2250 in early European deals on Wednesday to turn slightly negative in recent trading after a brief rally above 1.2300. The cable hesitates now after five days of gains, seeing a bounce due to a weaker dollar. Now, the pound holds well above the lower end of the extended trading range, also trading above the descending 20-DMA. During the European deals, the pair looks directionless, trying to attract more demand at this stage. The daily RSI points slightly lower in neutral territory, suggesting the pair could see some pressure in the immediate term before bouncing. In recent trading, GBPUSD was changing hands around 1.2274, down less than 0.1% on the day. On the downside, the immediate significant support is now represented by the 1.2260 zone. On the upside, a decisive recovery above 1.2300 would pave the way to a more sustained bounce.
The USDJPY pair looks indecisive these days, oscillating around the ascending 20-DMA. The dollar holds slightly positive during the European trading hours on Wednesday, holding below fresh October 2022 highs seen around 150.15 last week. The pair has settled below the 149.00 figure, staying elevated despite overbought conditions. As the pair still stays mostly above the ascending 20-DMA, downside risks remain limited in the near term. The dollar was last seen changing hands around 148.73, up 0.02% on the day. Now, the greenback needs to make a decisive break above the 149.00 region in order to resume the ascent. The daily RSI turned directionless, staying in neutral territory, suggesting the dollar could see some consolidation in the immediate term before deciding on further direction. On the hourly timeframes, the technical picture looks neutral, with prices stuck between the key SMAs while the RSI is directionless in neutral territory.
The price of gold bounced aggressively at the start of the week to open with a solid bullish gap and has been trending higher since then. Ahead of the weekend, the metal briefly dipped to fresh March lows around $1,810 before finishing in positive territory due to a decline in the US dollar. Now, the technical picture improves as the bullion is targeting the descending 20-DMA. The XAUUSD pair extended gains to the $1,870 zone and was last seen changing hands around the upper end of the trading range. Should the price break above this region, the $1,900 psychological level will come back into the market focus. Should the pressure reemerge any time soon, the bullion could get back below the $1,850 zone. Gold was last seen changing hands around $1,867, up 0.31% on the day. On the weekly timeframes, the bullion remains vulnerable even as the metal bounced from the key SMAs. On the upside, the immediate target is now represented by the $1,880 region, followed by the $1,900 zone. On the four-hour charts, the XAUUSD pair has settled between the 20- and 100-SMAs while the RSI looks upbeat, painting a neutral technical picture.