The greenback remains cautious after rejection from 103.00
The US dollar trades in a mixed manner this week, struggling for clear direction even as investor sentiment in the global financial markets has deteriorated recently. Earlier, the greenback came off local highs as buyers were spooked by the 103.00 level. As such, the USD index came across local resistance to settle around the 102.50 figure eventually, suggesting traders are indecisive at the start of the year. As such, the greenback struggles to attract sustained buying interest despite still low levels. The 103.00 level represents the immediate significant barrier for the time being. In a wider picture, the DXY remains downbeat, pressured by Fed’s dovish intentions. As the buck slipped marginally in recent trading, EURUSD turned upbeat on Wednesday after failed bearish attempts. Still, the pair stays below the ascending 20-DMA during the early European deals. The pair has settled around 1.0950 after finding support in the 1.0920 area earlier in the day. On the upside, the nearest resistance now arrives in the 1.0950 zone, followed by the mentioned SMA, today at 1.0970.
The pound came under pressure during the previous session as the dollar attracted renewed demand. On Wednesday, the pair sees a modest bullish bias, with downside momentum looking limited at this stage. The cable thus refrained from a deeper retreat, continuing to derive support from the ascending 20-DMA, today at 1.2700. In early European trading on Wednesday, the cable looks cautiously upbeat, holding below the 1.2750 figure. In a wider picture, the cable stays bullish now after last month’s slide to local lows around the 1.2500 figure. The daily RSI is slightly upbeat in neutral territory, suggesting buyers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2723, up 0.14% on the day. On the flip side, the immediate significant support is now represented by the 1.2700 zone. On the upside, a decisive ascent above 1.2730 would pave the way to a more sustained ascent.
The USDJPY pair holds mostly positive these days as the greenback remains buoyed in general. Last week, the dollar saw a solid bounce from cyclical lows registered around 140.25 previously. In the process, the pair regained the 145.00 figure before finding local resistance in the 146.00 area. After facing the mentioned barrier, the USDJPY pair stayed in the upper end of the extended trading range despite some retreat, suggesting additional gains could be in the cards at this stage. As such, the greenback has settled just below the 145.00 mark today, trying to attract more decisive demand. Also, the pair now holds above the 20-DMA, which implies that downside risks have eased since plunging to the mentioned cyclical lows. The dollar was last seen changing hands around 144.86, +0.27% on the day. Now, the greenback needs to decisively break the 145.00 region in order to stage another local rally. The daily RSI retains bullish bias, suggesting the pair could at least stay afloat in the near term.
The price of gold stays positive on Wednesday after a slide witnessed at the start of the week, with downside momentum looking limited at this stage. After a dip below the ascending 20-DMA for the first time since mid-December, the XAUUSD pair stays vulnerable despite some bullish attempts. The metal extended gains to $2,035 zone in recent trading to settle slightly below the 20-DMA in early European deals on Wednesday, adding 0.39% on the day. As such, the technical picture has improved slightly, but the momentum still looks too modest. Should gold stay below the $2,045 immediate resistance in the near term, another retreat could be expected. On the weekly timeframes, the technical picture has deteriorated somehow, while a wider picture remains relatively upbeat after reaching fresh all-time highs last month. On the upside, the immediate significant target is now represented by the $2,050 psychological level. On the flip side, the nearest support lies around $2,025, followed by the ascending 55-DMA, today at $2,010.