After the meeting, the USD index fell back below the 103.00 figure to extend losses on Thursday
The US dollar came under renewed selling pressure as the Federal Reserve struck a more dovish tone in the accompanying policy statement on Wednesday. After the meeting, the USD index fell back below the 103.00 figure to extend losses on Thursday. As such, the greenback slid to the 102.50 zone that has been capping the downside so far. After finding support, the dollar stays downbeat in early European deals, struggling to attract buying interest as traders remain cautious. The DXY is oscillating around 102.65 on Thursday, looking bearish as risk sentiment in the global financial markets has improved after a dovish hint from the Fed. Against this backdrop, EURUSD extended its bounce from local lows to trade positive for the fourth day in a row. The pair thus climbed back above the key SMAs, flirting with the 1.0900 figure for the first time since early December. The pair is changing hands around 1.0903 as of writing, up 0.28% on the day.
The pound finished higher on Wednesday amid a weaker dollar, retaining bullish bias today. However, the pair refrains from a more decisive bounce at this stage despite dollar weakness, suggesting the cable could resume the decline after a pause. On the positive side, the pair is now above the key SMAs. In early European deals on Thursday, the cable remains upbeat, holding above the 1.2600 figure. As such, the cable stays relatively bullish now after the recent slide to local lows around the 1.2500 figure. During the European deals, the pair keeps trying to attract more decisive demand. The daily RSI looks directionless in neutral territory, suggesting buyers could stay on the sidelines in the immediate term. In recent trading, GBPUSD was changing hands around 1.2566, up 0.11% on the day. On the flip side, the immediate significant support is now represented by the 1.2600 zone, followed by the 1.2587 mark where the ascending 20-DMA arrives. On the upside, a decisive ascent above 1.2600 would pave the way to the recent cyclical highs.
After a two-day recovery that was capped by the 146.60 zone, the USDJPY pair reversed south on Tuesday and has been on the defensive since then. During the previous session, the dollar saw solid losses but managed to hold above the 20-DMA that was derailed earlier today. Since then, the greenback extended losses late-July lows just below the 141.00 figure before bouncing partially 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 141.88, down 0.70% on the day. Now, the greenback needs to decisively regain the 142.00 mark in order to trim losses further. The daily RSI looks bearish in oversold territory, suggesting the dollar could see another bounce in the immediate term. On the hourly timeframes, the technical picture looks neutral, with the RSI directionless around the 30 figure while prices stay below the key SMAs.
The price of gold turned upbeat on Wednesday amid a weaker dollar following the fed’s meeting. After finding support around three-week lows in the $1,973 area, the XAUUSD pair rallied to settle back above the 20-DMA. On Thursday, the metal retains bullish bias, trading well above the $2,000 psychological level that turned back into support. As such, the technical picture has improved marginally, but the bullion still holds below the $2,050 zone. Should gold regain this 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 $2,036, up more than 1% on the day. On the weekly timeframes, the bullion looks mixed as, while a wider picture remains relatively upbeat. On the upside, the immediate significant target is now represented by the $2,075 region, followed by the $2,100 zone.