The US dollar tries to shrug off the selling pressure after a two-day slide
EURUSD
After a two-day slide, the US dollar tries to shrug off the selling pressure on Wednesday. The latest recovery attempt was capped by the 102.65 zone that triggered a local retreat towards the 102.00 area during the previous session. As such, the greenback managed to hold above the psychological level to bounce marginally in recent trading. After finding support, the dollar looks relatively upbeat in early European deals, still struggling to attract a decisive buying interest as traders remain cautious. The DXY is still looking bearish as risk sentiment in the global financial markets has improved after a dovish hint from the Fed. EURUSD came under some pressure today following a two-day ascent that was capped by the 1.1000 figure. Despite the retreat, the pair still holds above the key SMAs after finding support in the 1.0890 area at the start of the week. The pair is changing hands around 1.0957 as of writing, down 0.20% on the day. The immediate resistance now arrives in the 1.0980-1.0990 zone that has been capping bullish momentum this week.
GBPUSD
The pound finished higher on Tuesday as dollar fell across the board. However, the pair failed to retain bullish bias today, with downside momentum looking solid at this stage. The cable thus refrained from a more decisive bounce at this stage despite dollar weakness, resuming the decline instead. On the positive side, the pair stays above the key SMAs. In early European deals on Wednesday, the cable looks bearish, but still holding above the 1.2650 figure. In a wider picture, the cable stays bullish now after the recent slide to local lows around the 1.2500 figure. The daily RSI looks bearish in neutral territory, suggesting buyers could stay on the sidelines in the immediate term. In recent trading, GBPUSD was changing hands around 1.2658, down 0.56% on the day. On the flip side, the immediate significant support is now represented by the 1.2630 zone where the ascending 20-DMA arrives. On the upside, a decisive ascent above 1.2700 would pave the way to the recent cyclical highs.
USDJPY
After last week’s slide, the USDJPY pair reversed north and has been on the offensive since then. During the previous session, the dollar encountered resistance represented by the 145.00 figure that capped the ascent and triggered a local retreat. Since then, the greenback has slipped below the 143.50 zone, albeit the downside pressure looks limited so far. After finding support just below 141.00 last week, the dollar still tries to attract demand, but the lack of momentum suggests the selling pressure could intensify in the near term. 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 143.36, down 0.31% on the day. Now, the greenback needs to decisively regain the 143.50 region in order to trim losses further. The daily RSI remains in neutral territory, pointing slightly higher. On the hourly timeframes, the technical picture turned downbeat, with the RSI pointing south while prices stuck between the key SMAs.
XAUUSD
The price of gold holds in positive territory this week due to a weaker dollar. After finding support in the form of the ascending 20-DMA, the XAUUSD pair bounced marginally and has been retaining bullish bias since then. The metal looks slightly upbeat during the early European deals on Wednesday, 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 significant 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 $2,042, up 0.16% on the day. On the weekly timeframes, the bullion looks mixed, while a wider picture remains relatively upbeat. On the upside, the immediate significant target is now represented by the $2,048 region, followed by the $2,075 zone.
