As Treasury yields jumped, USD bulls managed to push the prices back above the 103.00 level
The US dollar has accelerated its ascent overnight after some hesitation at the start of the week, trading with a modest bullish bias on Wednesday as risk sentiment looks downbeat in the global financial markets. As Treasury yields jumped, USD bulls managed to push the prices back above the 103.00 level. As such, the USD index came across local resistance around 103.60 to settle the flat-line in recent trading as traders opted to take some profit after a rally towards one-month highs. The 103.00 level represents the immediate significant support for the time being. In a wider picture, the DXY remains downbeat, pressured by Fed’s dovish intentions. As the buck retreated from local peaks, EURUSD turned slightly positive on Wednesday after finding support around 1.0855 earlier in the day. The pair is now flirting with the 55-DMA, trying to stay afloat after yesterday’s plunge. The euro has settled around 1.0880, up less than 0.1% on the day. On the upside, the nearest resistance now arrives in the 1.0900 zone, followed by the 1.0930 region.
The pound bounced on Wednesday after finding support around one-month lows just below the 1.2600 figure as the dollar attracted renewed some selling pressure. As such, the pair regained positive bias, with downside momentum looking limited at this stage. The cable thus recovered after a solid retreat, bow holding below the 20-DMA, today at 1.2707. In early European trading on Wednesday, the cable looks upbeat, holding just below the 1.2700 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 upbeat in neutral territory, suggesting buyers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2688, up 0.42% on the day. On the flip side, the immediate significant support is now represented by the 1.2660 zone. On the upside, a decisive ascent above 1.2700 would pave the way to a more sustained ascent.
USDJPY stays positive on Wednesday, extending gains since the start of the week. Last week, the dollar saw a solid bounce from cyclical lows registered around 140.25 previously to see further gains these days. In the process, the pair regained the 147.00 figure before retreating partially in recent trading. After facing the 148.00 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 147.50 region, holding in positive territory after a two-day rally. Also, the pair now holds above the 100-DMA, which implies that downside risks have eased since plunging to the mentioned cyclical lows. The dollar was last seen changing hands around 147.60, up 0.30% on the day. Now, the greenback needs to decisively break the 148.00 region in order to stage another local rally. The daily RSI turned slightly bullish, suggesting the pair could see another ascent in the immediate term.
Gold prices stay in negative territory since Tuesday after a slide witnessed amid the rallying dollar, with downside momentum looking solid at this stage. After a dip below the ascending 20-DMA, the XAUUSD pair stays pressured on Wednesday. Earlier in the day, the metal extended losses to $2,017 to settle slightly above the $2,020 in European deals, shedding 0.12% on the day. As such, the technical picture has deteriorated, with downside risks persisting. Should gold stay below the $2,030 immediate resistance in the near term, further profit-taking 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 $2,044 zone there the 20-DMA lies. On the flip side, the nearest support lies around $2,014, where the 55-DMA arrives.