USD retains positive bias as risk sentiment has deteriorated somehow in the global financial markets
The US dollar has been recovering for the third session in a row on Wednesday after last week’s dip below the 105.00 handle for the first time in 1.5 months. The USD index came under severe selling pressure ahead of the weekend in the aftermath of a weak US jobs report. After a sell-off, the USD bounced back into positive territory, suggesting the currency could still stay within a bullish trend in the immediate term. The DXY keeps oscillating above 105.50 today, retaining positive bias as risk sentiment has deteriorated somehow in the global financial markets. As a result, EURUSD came under renewed selling pressure to get back below the 1.0700 after a brief climb to the 1.0750 region at the start of the week. Still, the pair stays above the key SMAs that remain in the market focus for the time being. The pair is changing hands around 1.0673 as of writing, down 0.23% on the day after a brief climb to 1.0700 zone earlier in the day.
The pound keeps losing ground since the start of the week, retaining a solid bearish tone after a short-lived spike witnessed last week. Earlier today, the pair found resistance around 1.2300 before extending the decline. In early European deals, the cable has settled in negative territory, targeting the directionless 20-DMA, today at 1.2255. As such, the cable stays on the defensive now after recent volatility spikes, pressured by a stronger dollar. During the European deals, the pair looks downbeat, struggling to attract demand after a fairly aggressive rally. The daily RSI looks bearish in neutral territory, suggesting the pair could see more pressure in the immediate term. In recent trading, GBPUSD was changing hands around 1.2255, down 0.35% on the day. On the flip side, the immediate significant support is now represented by the 1.2200 zone. On the upside, a decisive ascent above the 200-SMA, today at 1.2433, would pave the way to a more sustained bounce.
The USDJPY pair stays volatile these days, oscillating back above the 20-DMA. The dollar holds in positive territory during the European trading hours on Wednesday, recovering after a three-day slide from fresh one-yar peaks seen around 151.70 last week. The pair has settled above the 150.00 figure, staying elevated despite the recent retreat. Also, the pair is now back above the ascending 20-DMA, suggesting upside risks persist for the time being. The dollar was last seen changing hands around 150.75, adding 0.28% on the day. Now, the greenback needs to regain the 151.00 mark in order to extend the ascent. The daily RSI looks bullish in neutral territory, suggesting the dollar could see more gains in the immediate term before steadying or retreating amid profit-taking. On the hourly timeframes, the technical picture looks upbeat, with prices holding above the key SMAs while the RSI is challenging the 70 handle, being on the verge of entering overbought territory.
The price of gold is back under pressure, struggling to regain upside bias since the start of the week. The bullion slid from mid-May highs seen just above the $2,000 psychological level and has been mostly on the defensive since then. As such, the technical picture has deteriorated again as the bullion is challenging the ascending 20-SMA. After an earlier spike, the XAUUSD retreated below $1,980, staying on the defensive during the European hours on Wednesday. Should gold stay above the $1,955 zone in the near term, the mentioned zone will come back into the market focus. If the pressure intensifies any time soon, the bullion could see a more severe retreat in the days to come. Gold was last seen changing hands around $1,966, down 0.03% on the day. On the weekly timeframes, the bullion turned downbeat, trading in negative territory for the second week in a row. On the upside, the immediate target is now represented by the $1,980 region. On the four-hour charts, the XAUUSD pair is now below the key SMAs while the RSI looks upbeat, painting a mixed technical picture.