The USD index continues to face the key nearest resistance in the 103.00 area
The US dollar keeps trading in a mixed manner these days, struggling for clear direction even as investor sentiment in the global financial markets has improved since last week’s sell-off. 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 below 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 bounced marginally in recent trading, EURUSD came under some pressure on Thursday after failed bullish attempts just below the 1.10 mark. The pair also stays below the ascending 20-DMA during the early European deals. The euro has settled around 1.0965 after finding support in the 1.0910 area earlier in the week. On the upside, the nearest resistance now arrives in the 1.0990 zone, followed by the 1.10 psychological level.
The pound bounced during the previous session as the dollar attracted renewed some selling pressure. On Thursday, the pair looks directionless, 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 1.2706. In early European trading on Thursday, 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 1.2738, unchanged 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 1.2750 would pave the way to a more sustained ascent.
USDJPY holds mostly positive these days even as the greenback looks mixed 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 above the 145.50 region today, holding in negative territory after Wednesday’s rally. 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 145.55, down 0.12% on the day. Now, the greenback needs to decisively break the 145.80 region in order to stage another local rally. The daily RSI turned slightly bearish, suggesting the pair could refrain from another ascent in the immediate term.
Gold prices turned positive on Thursday after a slide witnessed earlier in 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. In recent trading, the metal extended gains to $2,035 zone to settle slightly below the 20-DMA in European deals, adding 0.42% 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 $2,011.