Profit-taking that pushed the USD index back to the 104.00 zone which remains in the market focus
EURUSD
The US dollar struggles for direction on Wednesday, holding around the 104.00 figure yesterday’s slide. The greenback trades little changed in early European deals, holding onto a tight intraday trading range as volatility has abated following the recent retreat from last week’s peaks. A failed bullish attempt in the 105.00 area triggered some profit-taking that pushed the USD index back to the 104.00 zone which remains in the market focus. In recent trading, the greenback was trading around 104.08, up 0.1% on the day. Despite the recent retreat, the USD index remains relatively resilient, holding mostly above the 104.00 figure, while the 103.80 zone represents the nearest significant support at this stage. Meanwhile, EURUSD has settled in a tight range today after the recent surge that was capped by the 1.0840 region yesterday. A decisive break above the 1.0800 region would add to recovery impetus. In early European trading, the euro has settled slightly above this psychological level, adding just 0.02% on the day. On the flip side, the nearest support now arrives in the 1.0760 zone.
GBPUSD
The pound struggles to retain yesterday’s bullish bias on Wednesday after a brief rally towards 1.2670 for the first time in over a week. Following a jump, the pair came off local highs, struggling to attract fresh demand above the 1.2600 figure. During the bounce, the pair got back above the 200-DMA that has turned back into support as a result. Earlier in the day, the pair encountered resistance around the 1.26307 zone, now holding around the lower end of a local trading range. In a wider picture, the cable turned more bullish now after a bounce above the 1.2600 figure. The daily RSI is now modestly upbeat in neutral territory, suggesting potential buyers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2613, down 0.05% on the day. On the flip side, the immediate significant support is now represented by the 1.2600 zone., followed by 1.2580. Earlier, a decisive ascent above the 200-DMA paved the way to a local bounce.
USDJPY
USDJPY turned slightly positive on Wednesday, still holding within a tight trading range after the recent surge to fresh multi-month highs. Last week, the dollar extended gains to 150.90 for the first time since November before retreating partially amid some profit-taking. In yesterday’s trading, the pair dipped below the 150.00 zone to attract some renewed demand at still elevated levels. On the positive side, the prices stay well above both the 100- and 20-DMAs that converged in the 147.55 area earlier in the month. In recent trading, the pair has settled above the 150.00 figure, a decisive bullish break of which would add to the buying pressure. On the upside, the dollar is now facing the 150.45 immediate barrier. The dollar was last seen changing hands around 150.18, up 0.12% on the day. Now, the greenback needs to settle above the 150.00 region on a daily closing basis in order to resume the ascent and refrain from a deeper local correction. The daily RSI is now back upbeat, suggesting the pair could see another bullish attempt after some hesitation.
XAUUSD
Gold prices opened higher today, retaining bullish bias for the sixth session in a row. Earlier in the day, the bullion saw a brief spike towards nearly two-week highs seen around $2,032. Despite the latest bounce, gold prices remain vulnerable, with downside potential persisting at this stage, albeit the bearish pressure has abated significantly over the last days. After a jump to the mentioned highs, the pair retains the recovery momentum, with the immediate outlook neutral. Following peaking around $2,045 earlier in the month, the bullion has settled back above the $2,000 psychological level that was last seen on Friday. The XAUUSD pair has settled around $2,026 at the time of writing, trading 0.12% higher on the day. As such, the technical picture has improved somehow, with upside risks persisting while above $2,000. Should gold get below the 100-DMA, today at $1,990, in the near term, a deeper retreat could be expected. On the weekly timeframes, the technical picture turned more upbeat, with wider picture staying neutral after reaching fresh all-time highs in December. On the upside, the immediate significant target is now represented by the $2,045 zone.
