Gold prices failed to overcome the 20-DMA earlier in the week and have been pressured since then
The US dollar has been pressured for the second сconsecutive session on Thursday as positive risk sentiment persists in the global financial markets. The greenback turned defensive amid some profit-taking, with Treasury yields retreat adding to downbeat tone surrounding the US currency. As such, the USD index came across local resistance around 103.80 earlier in the week to briefly derail the 103.00 psychological level during the previous session before trimming some losses. The 103.00 figure represents the immediate significant support for the time being. In a wider picture, the DXY remains relatively upbeat as Fed rate cut odds continue to decline. As the buck retreated from local peaks, EURUSD continues its uneven recovery attempts after finding support around the directionless 200-DMA. The pair keeps flirting with the ascending 55-DMA, trying to stay afloat after the recent surge. The euro has settled around 1.0897, up 0.13% on the day. On the upside, the nearest resistance now arrives in the 1.0900 zone, followed by the 1.0930 region.
The pound keeps advancing north after finding support around one-month lows just below the 1.2600 figure last week. As the dollar attracted some selling pressure, the pair retained positive bias, with downside momentum looking limited at this stage. The cable thus recovered after the recent retreat to settle back above the 20-DMA, today at 1.2706. In early European trading on Thursday, the cable looks slightly upbeat, holding above 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 1.2731, up 0.07% 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 makes shallow recovery attempts on Thursday after peaking at fresh November highs around 148.80 last week. Earlier in the day, the pair failed to regain the 148.00 zone, struggling to bounce after yesterday’s slide as the Japanese yen surged across the board in the aftermath of the Bank of Japan policy meeting. As such, the dollar briefly derailed the 147.00 figure before bouncing back to the 100-DMA, today at 147.50. In recent trading, the pair was holding just above the mentioned SMA, holding slightly positive on the day. After facing the 148.70 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 after a pause. Also, the pair now holds above the 100-DMA, which implies that downside risks have eased since plunging to cyclical lows in late December. The dollar was last seen changing hands around 147.66, up 0.12% 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 refrain from another retreat in the immediate term.
Gold prices failed to overcome the 20-DMA earlier in the week and have been pressured since then, albeit the downside momentum looking limited at this stage. After last week’s dip, the pair stays below the 20-DMA that has been capping the upside potential these days. Following peaking just below $2,040, the bullion has settled slightly below the 550-DMA during the European deals on Thursday, shedding 0.12% on the day. As such, the technical picture has deteriorated somehow, with downside risks persisting while below the mentioned 20-DMA, today at $2,034. 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 stays relatively downbeat, while a wider picture remains positive after reaching fresh all-time highs last month. On the upside, the immediate significant target is now represented by the $2,040 zone. On the flip side, the nearest support lies around $2,010, followed by the $2,000 mark.