Profit-taking that pushed the USD index back to the 104.00 figure which is back in the market focus
The US dollar turned slightly positive on Thursday after a two-day slide from mid-November highs seen around 104.60 earlier in the week. A failed bullish attempt in this area triggered some profit-taking that pushed the USD index back to the 104.00 figure which is back in the market focus. In recent trading, the greenback was trading around 104.10, retaining a modest bullish 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 earlier in the week 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 Thursday. Still, the shared currency continues to lack the momentum for exceeding the 100-DMA, today at 1.0782. A decisive break above this moving average would add to recovery impetus. In early European trading, the euro has settled around 1.0770, unchanged for the day. On the flip side, the nearest support now arrives in the 1.0745 zone that triggered a bounce yesterday.
The pound turned slightly bearish on Thursday after a two-day recovery from the 1.2520 zone which was reached 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 encountered resistance around the 1.2640 zone to retreat marginally in recent trading. The upside momentum looks limited at this stage despite the dollar’s retreat. 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 directionless in neutral territory, suggesting potential buyers could hesitate in the immediate term. In recent trading, GBPUSD was changing hands around 1.2618, down 0.04% 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 another local bounce.
USDJPY has been trending mostly higher this week, holding around November highs on Thursday. At the start of the week, the dollar extended gains to 148.90 for the first time since November before attracting some profit-taking. Earlier today, the pair briefly dipped below 148.00 to attract renewed demand and thus climbed back to the mentioned highs. Also on the positive side, the prices now hold above both the 100- and 20-DMAs that converged in the 147.55 area today. In recent trading, the pair has settled around 148.80, clinging to the upper end of the extended trading range. As such, the dollar is now facing the 149.00 barrier. The dollar was last seen changing hands around 148.82, up 0.44% on the day. Now, the greenback needs to decisively break the 148.90 region in order to extend the ascent and refrain from a local correction. 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 a short-lived bounce witnessed earlier in the week. The precious metal is now holding around both the 20-and the 55-DMAs, struggling 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. Following peaking around $2,065 last week, the bullion has settled below the $2,030 region during the European deals on Thursday, trading 0.37% lower on the day. As such, the technical picture failed to improve since last week, 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 $2,045 zone. On the flip side, the nearest support lies around $2,020, followed by the $2,000 psychological level.