As the buck keeps bleeding, the euro could target the 1.1150 zone next
The US dollar stays on the defensive these days after finishing the second bearish week in a row. The DXY thus extends its retreat from local highs seen above the 104.00 figure earlier in the month. On Thursday, the USD slipped to fresh late-July lows around 100.67 and was last seen clinging to the lower end of the extended trading range as traders continue to exit long positions ahead of the New Year holiday. As such, the greenback struggles to attract buyers despite low levels, now staying below the 101.00 figure. This level represents the immediate upside target for the time being. In a wider picture, the DXY remains downbeat as well, pressured by Fed’s dovish intentions along with weaker-than-expected inflation data. As such, EURUSD saw fresh August highs on Thursday to touch the 1.1125 region. After the spike, the pair has settled around the upper end of the extended trading range, suggesting the prices could target the 1.1150 zone next. The immediate resistance now arrives in the 1.1153 zone where the 200-week SMA arrives.
The pound finished higher on Wednesday as the dollar fell across the board. The pair retains bullish bias today, with downside momentum looking limited at this stage. The cable thus refrained from a bearish correction as the dollar’s recovery attempt failed. Also on the positive side, the pair stays above the key SMAs. In early European trading on Thursday, the cable looks slightly bullish, holding above the 1.2800 figure. In a wider picture, the cable stays upbeat now after this month’s slide to local lows around the 1.2500 figure. The daily RSI looks upbeat in neutral territory, suggesting buyers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2713, up 0.15% on the day. On the flip side, the immediate significant support is now represented by the 1.2800 zone, followed by the 1.2785 region. On the upside, a decisive ascent above 1.2830 would pave the way to an even more sustained ascent.
The USDJPY pair finished lower on Wednesday as the greenback stayed pressured across the market. As such, the dollar failed to overcome the 20-DMA and accelerated the decline instead. After finding resistance represented by this moving average, today at 142.96, the USDJPY pair reversed south to get back below the 141.00 figure. Since then, the greenback extended losses to fresh July lows around 140.70. The greenback the lower end of the trading range, still struggling to attract demand. Also, the pair stays well below the mentioned 20-DMA, which implies that downside risks still persist for the time being. The dollar was last seen changing hands around 140.83, down 0.69% on the day. Now, the greenback needs to decisively regain the 141.00 region in order to stage a local bounce. The daily RSI is flirting with oversold territory, suggesting a bounce could be expected in the near term. On the hourly timeframes, the technical picture turned more bearish, with the RSI deep in oversold territory while prices are now well below the 20-SMA.
The price of gold stays in positive territory this week, with upside momentum persisting. After finding support in the form of the ascending 20-DMA, the XAUUSD pair bounced and has been trending north since then. The metal extended gains to $2,088 on Thursday before retreating marginally in recent trading. As such, the technical picture has improved further, with the bullion holding well above the $2,050 zone. Should gold stay above this immediate support 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. On the weekly timeframes, the bullion looks positive, while a wider picture remains relatively upbeat. On the upside, the immediate significant target is now represented by the $2,100 psychological level. On the flip side, the nearest support lies around $2,065 and then in the $2,050 zone, followed by the ascending 20-DMA, today at $2,034.