After finding support around the 104.00 figure, the USD switched into recovery mode
The US dollar retains a modest upside bias on Thursday after the recent brief dip below the 104.00 handle for the first time since early September. Earlier in the week, the USD index came under severe selling pressure in the aftermath of a weaker-than-expected US inflation report. After finding support around the 104.00 figure, the USD switched into recovery mode. Still, the currency struggles to attract more decisive buying interest as traders remain cautious after a major sell-off. The DXY is oscillating around 104.50 in early European deals, looking modestly upbeat, with risk sentiment slightly negative in the global financial markets. Against this backdrop, EURUSD came off local peaks seen marginally below the 1.0900 handle where late-August highs lie. As such, the pair refrained from challenging the barrier to retreat partially instead. The pair is changing hands around 1.0844 as of writing, down 0.01% on the day after a brief climb to the 1.0855 zone earlier in the day.
The pound has been correcting lower for the second session in a row on Thursday amid some recovery in USD demand. The pair peaked just above the 1.2500 figure that capped the bullish momentum and triggered some profit-taking. Earlier today, the pair came across the 1.2425 barrier before extending the pullback. In early European deals, the cable has settled in negative territory, holding below 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 1.2379, down 0.29% on the day. On the flip side, the immediate significant support is now represented by the 1.2350 zone, followed by the 1.2330 intermediate barrier on the way towards 1.2300. On the upside, a decisive ascent above 1.2400 would pave the way to a bounce.
The USDJPY pair plunged earlier in the week as the US dollar came under pressure across the board. However, the greenback managed to regain upside bias to erase losses after finding a local bottom around the 150.00 figure. During the subsequent recovery, the pair got back above the ascending 20-DMA, today at 150.50. After finding support, the dollar holds in positive territory during the European trading hours on Thursday. 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 151.39, adding 0.03% on the day. Now, the greenback needs to regain the 151.50 mark in order to extend the ascent. The daily RSI looks directionless in neutral territory, suggesting the dollar could lack the momentum in the immediate term. On the hourly timeframes, the technical picture looks upbeat, with prices holding above the key SMAs.
The price of gold is back on the offensive after a short-lived decline seen during the previous session. Still, the metal stays below the directionless 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 upbeat during the European hours on Thursday. 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 $1,966, up 0.33% 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 $1,973 region where the 20-DMA lies. On the four-hour charts, the XAUUSD pair remains stuck between the key SMAs while the RSI looks bullish, painting a mixed technical picture.