The dollar licks wounds after finding support just below the 102.50 region, bears still in control
The US dollar bounce slightly on Wednesday after finding support just below the 102.50 figure earlier in the day. As such, the greenback saw fresh August lows as the overall pressure continued to persist. The USD index struggles to shrug this month’s selling pressure amid rising expectations for an earlier rate cut by the Fed. After finding support around the mentioned lows, the USD erased intraday losses, staying on the defensive, however. The US 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, on Thursday, looking modestly downbeat, with risk sentiment mixed in the global financial markets. Against this backdrop, EURUSD came off local highs to turn slightly negative during the previous session after an earlier ascent to the 1.1016 zone that capped gains. The pair is changing hands around 1.0975 as of writing, up less than 0.1% on the day. In the immediate term, the euro needs to hold above 1.0950 in order to extend the ascent.
The pound finished unchanged on Wednesday after peaking at fresh August highs around 1.2730 during the previous session amid persisting weakness surrounding the USD. However, the pair refrains from any major correction despite slightly overbought conditions, suggesting the cable could extend the ascent after a pause. Also, the pair stays well above the key SMAs that capped losses earlier. In early European deals on Thursday, the cable has settled in positive territory, holding just above the 1.2700 figure. As such, the cable stays upbeat now after the recent ascent to fresh multi-month highs. During the European deals, the pair keeps trying to attract more robust demand. The daily RSI looks directional in overbought territory, suggesting the bulls could face a barrier in the immediate term. In recent trading, GBPUSD was changing hands around 1.2704, up 0.08% on the day. On the flip side, the immediate significant support is now represented by the 1.2655 zone, followed by the 1.2625 intermediate barrier on the way towards 1.2600. On the upside, a decisive ascent above 1.2700 would pave the way to fresh cyclical tops.
The USDJPY pair reversed south in mid-month and has been under pressure since then. During the previous session, the dollar saw a brief plunge to mid-September lows around 146.66. Since then, the greenback managed to trim some losses, still staying under pressure on Thursday. After a brief recovery, the pair slid again to settle around the 147.00 figure that remains in the market focus for the time being. After finding support below this level on Wednesday, the dollar holds in negative territory during the European trading hours today. 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 147.06, down 0.12% on the day. Now, the greenback needs to decisively regain the 147.00 mark in order to stage a local recovery. The daily RSI looks bearish in neutral territory, suggesting the dollar could see persisting downside momentum in the immediate term. On the hourly timeframes, the technical picture looks neutral, with the RSI pointing north and prices staying below the key SMAs.
The price of gold stays bullish, refreshing cyclical highs above the $2,000 psychological level this week. Earlier, the metal regained the directionless 20-DMA that turned back into support. As such, the technical picture has improved again, with the bullion back above the $2,030 figure. After last week’s brief dip to the $1,965 zone, 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 Thursday. Should gold overcome the $2,050 immediate barrier 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 $2,045, unchanged for the day. On the weekly timeframes, the bullion stays upbeat, trading in positive territory for the third week in a row. On the upside, the immediate significant target is now represented by the $2,052 region that that capped the rally during the previous session.