The greenback looks modestly upbeat, with risk sentiment slightly negative in the global financial markets
The US dollar retains a modest bullish bias on Wednesday after a brief dip to fresh late-August lows around 103.18 during the previous session. Last week, the USD index came under severe selling pressure in the aftermath of a weaker-than-expected US inflation report and has been on the defensive since then. After finding support around the mentioned lows, the USD erased intraday losses, staying positive so far. Still, the currency struggles to attract more decisive buying interest as traders remain cautious after a sell-off. The DXY is oscillating around 103.75 in early European deals, looking modestly upbeat, with risk sentiment slightly negative in the global financial markets. Against this backdrop, EURUSD retreated from early-August highs seen around 1.0965 on Tuesday. The pair is changing hands around 1.0915 as of writing, down 0.07% on the day. In the immediate term, the euro needs to hold above 1.0900 in order to resume the ascent.
The pound turned negative on Wednesday after three bullish sessions in a row amid persisting pressure surrounding the USD. The pair peaked just below the 1.2560 zone that capped the bullish momentum and triggered some profit-taking. Still, the pair stays above the 100-DMA that capped the rally last week. In early European deals, the cable has settled in negative territory, holding above the mentioned SMA, today at 1.2500. As such, the cable turned slightly downbeat now after the recent break above the 100-DMA. During the European deals, the pair keeps trying to trim intraday losses. The daily RSI looks bearish in neutral territory, suggesting the pair could see more downside attempts in the immediate term. In recent trading, GBPUSD was changing hands around 1.2520, down 0.13% on the day. On the flip side, the immediate significant support is now represented by the 1.2500 zone, followed by the 1.2460 intermediate barrier on the way towards 1.2400. On the upside, a decisive ascent above 1.2550 would pave the way to another rally.
The USDJPY pair reversed north after a brief plunge to mid-September lows around 147.15 during the previous session. As such, the greenback managed to erase intraday losses after finding a local bottom, retaining bullish bias on Wednesday. After a modest recovery, the pair holds slightly below the 149.00 figure that represents the immediate upside target for the time being. After finding support, the dollar holds in positive territory during the European trading hours on Wednesday. Also, the pair stays well below the 20-DMA, suggesting downside risks still persist for the time being. The dollar was last seen changing hands around 148.91, up 0.35% on the day. Now, the greenback needs to regain the 149.00 mark in order to resume the ascent. The daily RSI looks bullish in neutral territory, suggesting the dollar could see some recovery momentum in the immediate term. On the hourly timeframes, the technical picture looks relatively upbeat, with prices stuck between the key SMAs.
The price of gold stays bullish after a short-lived jump to local highs above the $2,000 psychological level during the previous session. Earlier, the metal regained the directionless 20-DMA that turned back into support. As such, the technical picture has improved again as the bullion is now above the $2,000 figure. After last week’s brief dip to the $1,930 zone for the first time in nearly a month, the XAUUSD bounced back above the two key hurdles represented by the 20-DMA and the $2,000 mark, staying upbeat during the European hours on Wednesday. Should gold overcome the $2,010 zone in the near term, a stronger rally 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 $2,003, up 0.16% on the day. On the weekly timeframes, the bullion stays upbeat, trading in positive territory after last week’s recovery. On the upside, the immediate significant target is now represented by the $2,007 region that capped the ascent yesterday.