EURUSD derailed December lows during the previous session to touch 1.0722 for the first time since November
The US dollar stays slightly bearish on Wednesday after yesterday’s rejection from mid-November highs seen around 104.60. A failed bullish attempt in this area triggered some profit-taking that pushed the USD index back to the 104.00 figure. In recent trading, the greenback was trading around 104.10, retaining a modest bearish bias on the daily timeframes. Despite the correction, the USD index remains around the upper end of an extended trading range, trying to hold above the 104.00 figure, followed by the 104.20 nearest barrier at this stage. Meanwhile, EURUSD derailed December lows during the previous session to touch 1.0722 for the first time since November before bouncing. As the USD retreated, the euro managed to trim recent losses, trading above the 1.0750 region on Wednesday. Still, the shared currency continues to lack the momentum for exceeding the 100-DMA, today at 1.0780. A decisive break above this moving average would add to recovery impetus. In early European trading, the euro has settled around 1.0760, adding less than 0.1% on the day. On the flip side, the nearest support now arrives in the 1.0745 zone.
The pound stays bullish since Tuesday, reversing losses losses after a dip to the 1.2520 zone for the first time since mid-December earlier in the week. During the sell-off, the pair derailed the 200-DMA that has turned back into support by now. Earlier in the day, the pair recovered above the 1.2600 zone to face a local resistance level around 1.2630. As the dollar turned defensive across the board, the pair stays upbeat. However, upside momentum looking limited at this stage. In early European trading on Wednesday, the cable extended recovery before losing the upside momentum. In a wider picture, the cable looks neutral now after a slide to local lows around the 1.2500 figure in December. The daily RSI is now bullish in neutral territory, suggesting buyers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2616, up 0.16% on the day. On the flip side, the immediate significant support is now represented by the 1.2600 zone. On the upside, a decisive ascent above 1.2650 would pave the way to a local bounce.
After a solid rally late last week, USDJPY turned mixed. At the start of the week, the dollar extended gains to 148.90 for the first time since November before attracting some profit-taking during the previous session. Earlier today, the pair extended losses towards the 147.70 region that capped the way towards the 100- and 20-DMAs that represent the nearest significant support levels at this stage, today in the 147.50-147.40 zone. In recent trading, the pair has settled just above the flat line, lacking the bullish momentum the recent retreat. After facing the 149.00 barrier, the USDJPY pair hold relatively steady, refraining from a deeper correction despite the elevated levels. The dollar was last seen changing hands around 148.03, up less than 0.1% on the day. Now, the greenback needs to decisively break the 148.50 region in order to resume the ascent and refrain from deeper losses. The daily RSI is now back upbeat, suggesting the pair could see another bullish attempt after some hesitation.
Gold prices are back under pressure after yesterday’s short-lived bounce. The precious metal is now holding slightly above both the 20-and the 55-DMAs, but still struggles to shrug off the recent pressure, with downside potential persisting at this stage. After Monday’s dip towards the $2,014 zone, the pair stays vulnerable, with the immediate outlook looking neutral even as the prices have settled above the mentioned SMAs. Following peaking around $2,065 last week, the bullion has settled below the $2,040 region during the European deals on Wednesday, trading 0.10% lower on the day. As such, the technical picture failed to improve substantially, with downside risks persisting while below $2,040. Should gold stay below this immediate resistance in the near term, the $2,020 mark may be threatened. On the weekly timeframes, the technical picture turned more negative, with wider picture staying upbeat after reaching fresh all-time highs in December. On the upside, the immediate significant target is now represented by the $2,043 zone. On the flip side, the nearest support lies around $2,020, followed by the $2,000 psychological level.