The US currency struggles to attract more decisive buying interest as traders remain cautious
After a brief rally to fresh three-week highs earlier in the day, the US dollar came under some pressure on Thursday to settle back around the 104.00 figure that remains in the market focus. The USD index jumped to the 104.20 zone that capped gains during the Asian trading session. As such, the greenback saw fresh local highs as the overall pressure continued to ease. Since then, however, the USD index gave up gains after three days of gains in a row. After finding support around 102.50 last week, the USD has been mostly upbeat these days. Still, the US currency struggles to attract more decisive buying interest as traders remain cautious. The DXY is oscillating around 104.00 in early European deals on Thursday, looking modestly downbeat even as risk sentiment has deteriorated in the global financial markets. Against this backdrop, EURUSD bounced from local lows to turn positive after six sessions of losses in a row. The pair thus derailed the 20-DMA, trading below the 1.0800 figure on Thursday. The pair is changing hands around 1.0779 as of writing, up 0.18% on the day. In the immediate term, the euro needs to regain the 1.0800 mark in order to attract some renewed demand.
The pound finished lower for the third day in a row on Wednesday after peaking at fresh August highs around 1.2730 last week. However, the pair refrains from any major correction despite slightly overbought conditions, suggesting the cable could resume the ascent after a pause. Also, the pair stays above the key SMAs that capped losses earlier. In early European deals on Thursday, the cable looks bullish, holding marginally below the 1.2600 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 decisive demand. The daily RSI looks bullish in neutral territory, suggesting buyers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2583, up 0.20% on the day. On the flip side, the immediate significant support is now represented by the 1.2540 zone, followed by the 1.2500 intermediate barrier on the way towards the 200-DMA, today at 1.2480. On the upside, a decisive ascent above 1.2600 would pave the way to the recent cyclical highs.
The USDJPY pair reversed south on Thursday after a three-day recovery that was capped by the ascending 100-DMA. During the previous session, the dollar saw a brief climb to local highs around 147.50. Since then, the greenback has lost recovery momentum to suffer solid intraday losses so far, still staying under pressure in early European deals. The pair slid to late-August lows around 145.50 before bouncing slightly in recent trading. After finding support around the mentioned lows, the dollar holds deeply in negative territory, suggesting the selling pressure could persist for some time. Also, the pair stays well below the 20-DMA, which implies that downside risks still persist for the time being. The dollar was last seen changing hands around 145.64, down 1.13% on the day. Now, the greenback needs to decisively regain the 146.00 mark in order to stage a local recovery. The daily RSI looks bearish in neutral territory, suggesting the dollar could see persistent downside momentum in the immediate term. On the hourly timeframes, the technical picture looks negative, with the RSI bearish in oversold territory and prices staying well below the key SMAs.
The price of gold stays relatively upbeat after refreshing all-time highs above the $2,100 level at the start of the week. On Monday, the metal briefly derailed this level for the first time to register all-time highs in the $2,134 area before retreating towards the $2,030 region amid profit-taking. As such, the technical picture has improved again, with the bullion holding above the $2,000 figure. Should gold regain the $2,050 immediate barrier in the near term, a stronger ascent 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 $2,030, up 0.1% on the day. On the weekly timeframes, the bullion looks bearish as a result of a retreat from all-time tops, while a wider picture looks more upbeat. On the upside, the immediate significant target is now represented by the $2,050 region, followed by the $2,075 zone.