The USD index resumed the ascent as stocks markets turned muted ahead of Fed comments and key economic data
EURUSD
After yesterday’s bounce from local lows, the US dollar extended its recovery on Wednesday to climb back to the 104.00 area. The USD index attracted renewed demand as stocks markets turned muted ahead of Fed comments and key economic data out of the US that will set fresh direction for USD pairs this week. The greenback clings to modest gains in early European deals, staying within a relatively tight trading range as volatility has ebbed following the recent retreat from the peaks seen around 105.00 earlier in the month. In recent trading, the buck was changing hands around 104.06, up 0.23% on the day. The 103.80 zone now represents the immediate support while a daily close above 104.00 would add to short-term bullishness. Meanwhile, EURUSD is barely holding above 1.0800 today after the recent slide amid dollar’s strength. A decisive break below this level would add to bearish impetus. In early European trading, the euro has settled around 1.0815, shedding 0.27% on the day. On the upside, the nearest resistance now arrives in the 1.0850 zone.
GBPUSD
The pound turned bearish on Wednesday after a solid winning streak that pushed the prices to early-February highs last week. A failure to hold above 1.2700 resulted in short-term consolidation that was followed by a slide as dollar demand reemerged. As such, the pair slipped to the 1.2640 zone, a decisive break below which would pave the way towards the 1.2600 region last seen more than a week ago. Earlier in the day, the pair encountered resistance around the 1.2685 zone before retreating substantially. In a wider picture, the cable stays bullish while above the 1.2600 figure. The daily RSI is now downbeat in neutral territory, suggesting potential buyers could stay out of the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2639, down 0.35% on the day. On the flip side, the immediate significant support is now represented by the 1.2600 zone, followed by 1.2550. Should the upcoming US data exceed expectations, the pair may derail the 1.2600 figure on a daily closing basis.
USDJPY
After a short-lived slide on Tuesday, USDJPY resumed the ascent on Wednesday, still holding within a tight trading range after the recent surge to fresh multi-month highs. Earlier in the month, the dollar extended gains to 150.90 for the first time since November before retreating partially amid some profit-taking. In recent trading, the pair extended gains to the 150.80 region that remains in the market focus. 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 around the mentioned intraday highs. On the upside, the dollar is now facing the 151.00 immediate barrier. The dollar was last seen changing hands around 150.78, up 0.18% on the day. Now, the greenback needs to settle above the 151.00 region on a daily closing basis in order to confirm the latest breakout and refrain from a local correction. The daily RSI is now positive, suggesting the pair could refrain from another bearish attempt in the near term.
XAUUSD
Gold prices remain directionless these days, struggling to attract renewed demand after last week’s gains. Last week, the bullion saw a brief spike towards nearly two-week highs seen around $2,053 before retreating partially. 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 looks relatively steady, with the immediate outlook neutral. Following peaking around $2,050, the bullion has settled well off the upper end of the trading range. The XAUUSD pair was changing hands around $2,028 at the time of writing, trading 0.1% lower on the day. On the weekly timeframes, the technical picture turned neutral, with wider picture staying relatively upbeat after reaching fresh all-time highs in December. On the upside, the immediate significant target is now represented by the $2,040 zone. Downside risks are limited while above he $2,000 psychological level.