The DXY is trading around 106.40, struggling to regain positive bias as selling interest has reemerged
The US dollar briefly rallied above the 107.00 handle before retreating into negative territory on Wednesday as demand waned after the initial spike in reaction to a more dovish message from the Federal Reserve. The USD index finished just below the 106.50 zone, staying on the defensive on Thursday as risk demand reemerged in the aftermath of the Fed meeting. After the initial dip towards the 106.30 support zone earlier in the day, the USD bounced marginally but failed to climb back into positive territory. The DXY is trading around 106.40, struggling to regain positive bias as selling interest has reemerged. Should the greenback see a more intense bearish momentum, a decisive break above the 107.00 zone would open the way towards nearly one-year highs seen around 107.35 earlier this month. Meanwhile, EURUSD shrugged off the selling pressure after the recent dip to the 1.0515 intermediate resistance that capped the sell-off yesterday. As such, the pair is back around the 1.0600 figure that remain in the market focus for the time being. The pair is changing hands around 1.0597 as of writing, up 0.28% on the day after a brief climb to 1.0610 zone earlier in the day.
The pound came under some selling pressure on Wednesday before finishing around the flat-line. Earlier today, the pair found support around 1.2146 before bouncing marginally. In early European deals, the cable has settled in positive territory, flirting with the directionless 20-DMA that has been capping gains these days. As such, the cable is slightly on the offensive now after recent volatility spikes, struggling to regain a sustained upside bias. During the European deals, the pair looks slightly upbeat, struggling to attract more robust demand at this stage. The daily RSI looks directionless in neutral territory, suggesting the pair could see more hesitation in the immediate term. In recent trading, GBPUSD was changing hands around 1.2159, up 0.07% on the day. On the flip side, the immediate significant support is now represented by the 1.2100 zone. On the upside, a decisive recovery above the 20-SMA, today at 1.2180, would pave the way to a more sustained bounce.
The USDJPY pair turned more volatile these days, oscillating above the 20-DMA. The dollar holds in negative territory during the European trading hours on Thursday, holding below fresh September 2022 highs seen around 151.70 earlier in the week. The pair has settled slightly above the 150.00 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 150.48, shedding 0.30% on the day. Now, the greenback needs to hold above the 150.00 mark in order to resume the ascent. The daily RSI points south in neutral territory, suggesting the dollar could see some fresh bearish momentum in the immediate term before steadying or rising following profit-taking. On the hourly timeframes, the technical picture looks mixed, with prices stuck between the key SMAs while the RSI is has exited oversold territory, pointing north.
The price of gold bounced slightly early on Thursday after a three-day slide from mid-May highs just above 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 well above the key SMAs. After another mentioned spike, the XAUUSD retreated below $2,000, struggling for direction during the European hours on Thursday. Should gold stay above the $1,980 zone in the near term, the $2,000 high will come back into the market focus. If the pressure reemerges any time soon, the bullion could get back below the mentioned support. Gold was last seen changing hands around $1,985, up 0.3% on the day. On the weekly timeframes, the bullion still looks upbeat despite trading in negative territory. On the upside, the immediate target is now represented by the $2,000 region. On the four-hour charts, the XAUUSD pair is now below the 20-SMA while the RSI looks directionless, suggesting the pair could see some consolidation in the immediate term.