The central bank still expects to cut interest rates three times this year
EURUSD
The US dollar plunged on Wednesday in response to Fed’s dovish meeting as the central bank indicated that it still expects to cut interest rates three times this year. As such, the greenback snapped a winning streak and slipped from earl-March highs to find support around 103.15 earlier on Thursday. After yesterday’s sell-off, the USD index has steadied, trying to stage a local bounce during the early European hours. After a brief rally above 104.00, the buck has retreated, refraining from another bull run at this stage. In recent trading, the dollar was changing hands around 103.45, up 0.2% on the day. A daily close above the 103.50 zone would bring some more short-term bullishness back into the game. Meanwhile, EURUSD looks pressured around the 1.0900 figure after an earlier rally towards 1.0943. In early European trading on Thursday, the euro has settled around 1.0899, shedding 0.16% on the day. On the weekly charts, the technical picture looks constructive while above 1.0850.
GBPUSD
The pound turned slightly defensive after yesterday’s jump amid dollar weakness. Following a brief ascent above 1.2800, the pair has corrected lower partially as the greenback turned steadier. In early March, the pair bounced from local lows around the 1.2600 figure that capped the bearish momentum and triggered a strong recovery. In the process, the pair exceeded several solid barriers, with the 1.2800 handle representing the key barrier for the bulls at this stage. In recent trading, after facing the mentioned resistance, GBPUSD struggles to attract renewed demand. In a wider picture, the cable stays bullish while above the 1.2700 figure. The daily RSI is now bearish in neutral territory, suggesting potential buyers could stay out of the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2765, down 0.14% on the day. On the flip side, the immediate significant support is now represented by the 1.2730 figure, followed by yesterday’s lows around 1.2685.
USDJPY
USDJPY keeps rallying these days as the yen failed to attract demand even after the Bank of Japan’s decision to raise interest rates during the meeting this week. On Wednesday, the pair briefly jumped to fresh four-month highs around 151.90 before retreating partially. Earlier in March, the pair dipped to the 146.50 zone before attracting strong demand that has been persisting so far. In recent trading, the pair has settled slightly below the mentioned highs, deciding on further direction. On the upside, the dollar is now facing the 152.00 key barrier. The pair was last seen changing hands around 151.32, up 0.04% on the day. Now, the greenback needs to hold above the 151.00 region in order to extend the ascent to fresh multi-month tops. The daily RSI is now upbeat, suggesting the pair could refrain from a fresh bearish attempt in the near term. Should the pressure reemerge, the dollar may derail the 150.00 area, but it looks like the path of least resistance remains to the upside so far.
XAUUSD
Gold prices rallied to fresh all-time highs above $2,200 earlier on Thursday, digesting the outcome of the Fed meeting. The bullion peaked at $2,214 before retreating from fresh tops amid some profit-taking. Still, the XAUUSD pair stays positive on the day due to a bullish gap at the opening bell, with prices clinging to the upper end of the extended trading range. Still, the downside potential persists at this stage, as investors may take profit more aggressively after the spike. On Thursday, the XAUUSD pair is changing hands around $2,201 at the time of writing, adding 1.89% on the day. On the weekly timeframes, the technical picture stays positive, with wider picture remaining upbeat after reaching fresh all-time highs. On the upside, the immediate significant target is now represented by the $2,220 zone, followed by $2,230. Downside risks are limited while above the $2,100 region.