The buck stays away from cyclical tops and could retest the 106.00 figure if the pressure reemerges in the near term
The US dollar struggles for direction on Wednesday, trying to extend yesterday’s ascent from local lows seen around 105.35. After the initial dip, the USD index climbed back above the 106.00 figure that turned into support. Today, the DXY is treading water around 106.35 to turn positive after two volatile sessions as buying interest has reemerged despite the recent retreat in Treasury yields. Still, the buck stays away from cyclical tops and could retest the 106.00 figure if the pressure reemerges in the near term. A wider technical picture stays positive. Should the DXY see a more intense bullish pressure, a decisive break above the 106.50 zone would open the way towards the 107.00 handle. Meanwhile, EURUSD came under renewed selling pressure after a short-lived rally towards one-month highs seen just below the 1.0700 figure. As such, the pair is back below the 1.0600 figure that represents the immediate significant upside target. The pair is changing hands around 1.0585 as of writing, down 0.02% on the day after a brief climb to 1.0605 zone earlier in the day.
The pound came under renewed selling pressure and has been losing ground for the second session in a row on Wednesday. Earlier today, the pair found support around 1.2140 before bouncing marginally. In early European deals, the cable has settled in negative territory, staying below the descending 20-DMA. Earlier in the week, GBPUSD briefly approached the 1.2300 region but failed to preserve the momentum. As such, the cable hesitates now after recent volatility spikes, struggling to regain the upside bias as dollar demand persists. During the European deals, the pair looks slightly downbeat, trying to attract some demand at this stage. The daily RSI points slightly lower in neutral territory, suggesting the pair could see more bearish attempts in the immediate term. In recent trading, GBPUSD was changing hands around 1.2148, down 0.08% on the day. On the downside, the immediate significant support is now represented by the 1.2100 zone. On the upside, a decisive recovery above 1.2200 would pave the way to a more sustained bounce.
The USDJPY pair remains steady these days, oscillating above the ascending 20-DMA. The dollar holds unchanged during the European trading hours on Wednesday, trading marginally below fresh October 2022 highs seen around 150.15 earlier in the month. The pair has settled above the 149.50 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 149.90, unchanged on the day. Now, the greenback needs to confirm a break above the 149.80 region in order to extend the ascent. The daily RSI stays directionless 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 mixed, with prices holding above the key SMAs while the RSI is directionless in neutral territory.
The price of gold bounced aggressively at the end of last week to register mid-May highs just below the $2,000 psychological level. Earlier in the month, the metal briefly dipped to fresh March lows around $1,810 before bouncing strongly. Now, the technical picture has improved as the bullion is holding above the 200-DMA, today at $1,931. After the mentioned spike, the XAUUSD gave up the upside momentum to retreat partially amid profit-taking. Should gold stay above the $1,950 zone, the mentioned high will come back into the market focus. If the pressure intensifies any time soon, the bullion could get back below the $1,965 psychological level. Gold was last seen changing hands around $1,970, down 0.24% on the day. On the weekly timeframes, the bullion looks relatively upbeat as the metal bounced strongly from the key SMAs. On the upside, the immediate target is now represented by the $1,980 region. On the four-hour charts, the XAUUSD pair is now slightly below the 20-SMA while the RSI shows a modest bearish bias, suggesting the pair could retain bearish bias in the immediate term.