EURUSD rallied above the key SMAs to find resistance around late-August highs around 1.0890
The US dollar struggles for direction on Wednesday after yesterday’s brief dip below the 104.00 handle for the first time since early September. The USD index came under severe selling pressure in the aftermath of a weaker-than-expected US inflation report that triggered a plunge in Treasury yields. After finding support around the 104.00 figure overnight, the USD has settled slightly above this figure today, struggling to attract buying interest as traders remain cautious after inflation data that fueled rate cut expectations. The DXY keeps oscillating above 104.00 in early European deals, retaining bearish bias, with risk sentiment looking positive in the global financial markets. Against this backdrop, EURUSD rallied above the key SMAs to find resistance around late-August highs around 1.0890. As such, the pair refrained from challenging the 1.0900 mark to retreat partially instead. The pair is changing hands around 1.0868 as of writing, down 0.09% on the day after a brief climb to the 1.0880 zone earlier in the day.
The pound bounced strongly on Tuesday amid a weaker dollar before finding resistance just below the descending 100-DMA. The pair peaked just above the 1.2500 figure that capped the bullish momentum and triggered some profit-taking on Wednesday. Earlier today, the pair came across the 1.2500 barrier again before retreating partially. In early European deals, the cable has settled in negative territory, holding above the directionless 200-DMA, today at 1.2440. As such, the cable stays bullish now after rejection from the 100-DMA. During the European deals, the pair looks slightly downbeat, trying to attract renewed demand. The daily RSI looks bearish in neutral territory, suggesting the pair could see more hesitation in the immediate term. In recent trading, GBPUSD was changing hands around 1.2468, down 0.22% on the day. On the flip side, the immediate significant support is now represented by the 1.2440 zone where the mentioned 200-SMA lies. On the upside, a decisive ascent above 1.2500 would pave the way to a more sustained rally.
The USDJPY pair plunged on Tuesday as the US dollar came under pressure across the board. A day earlier, the greenback extended gains to fresh more than one-year highs around 151.90 before reversing. During the subsequent sell-off, the pair briefly derailed the ascending 20-DMA before bouncing. After finding support around 150.15 yesterday, the dollar holds in positive territory during the European trading hours on Wednesday, rallying for the sixth day in a row. The pair has settled above the 151.00 figure, recovering recent losses. Also, the pair is now back above the mentioned 20-DMA, suggesting upside risks still persist for the time being. The dollar was last seen changing hands around 150.73, adding 0.24% on the day. Now, the greenback needs to regain the 151.00 mark in order to resume the ascent. The daily RSI looks bullish in neutral territory, suggesting the dollar could see more gains in the immediate term. On the hourly timeframes, the technical picture looks upbeat, with prices holding below the key SMAs.
The price of gold has been rising for the third session in a row on Wednesday, approaching the ascending 20-DMA that turned back into resistance last week. As such, the technical picture has improved again even as the bullion is still below the mentioned SMA. After a brief dip to the $1,930 zone for the first time in nearly a month, the XAUUSD bounced back above the $1,950, zone, staying on the offensive during the European hours on Wednesday. Should gold overcome the $1,970 zone in the near term, a stronger bounce could be expected. If the pressure reemerges any time soon, the bullion could see another retreat in the days to come. Gold was last seen changing hands around $1,969, up 0.32% on the day. On the weekly timeframes, the bullion turned upbeat, trading in positive territory after last week’s decline. On the upside, the immediate significant target is now represented by the $1,974 region where the 20-DMA lies. On the four-hour charts, the XAUUSD pair is now stuck between the key SMAs while the RSI looks bullish, painting a mixed technical picture.