The dollar failed to hold onto recent gains amid profit-taking
EURUSD
The US dollar extended its rally to more than one-month highs on Wednesday before losing the upside momentum. The USD index peaked at 103.70 to come off highs by the closing bell. Today, the greenback came under pressure amid some profit-taking even as risk sentiment remains downbeat in the global financial markets. As Treasury yields retreated after a jump, the USD failed to hold onto gains as well. As such, the USD index came across local resistance to settle just below the flat-line in recent trading. 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 continues its recovery attempts after finding support around 1.0845 where the directionless 200-DMA lies. The pair is now flirting with the ascending 55-DMA, trying to stay afloat after the recent plunge. The euro has settled around 1.0885, 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.
GBPUSD
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, but still holding below the 20-DMA, today at 1.2709. In early European trading on Thursday, 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 1.2693, up 0.16% 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
USDJPY turned downbeat on Thursday after a three-day rally. Earlier, the pair extended gains to the 148.50 zone for the first time since late-November. As such, the dollar extended a solid bounce from cyclical lows registered around 140.25 last month. In recent trading, the pair retreated below the 148.00 figure to turn negative on the day. 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 below the 148.00 region, holding in bearish territory after a three-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 147.92, down 0.15% 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 bearish, suggesting the pair could refrain from another ascent in the immediate term.
XAUUSD
Gold prices bounced marginally on Thursday after a slide witnessed amid the rallying dollar, with downside momentum looking limited at this stage. After a dip below the 20-DMA, the XAUUSD pair turned slightly positive today. On Wednesday, the metal extended losses to $2,001 to settle around the $2,010 figure in European deals, adding 0.28% on the day. As such, the technical picture has deteriorated somehow, with downside risks persisting. Should gold stay below the $2,030 immediate resistance in the near term, the $2,000 mark may be threatened. 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 $2,030 zone, followed by the $2,042 figure where the 20-DMA lies. On the flip side, the nearest support lies around $2,000.