The USD index remains elevated, clinging to the upper end of the extended trading range
EURUSD
The US dollar holds steady on Wednesday, retaining a modest bullish bias since yesterday after posting strong gains during the second half of last week. The greenback climbed to mid-February highs in the 104.50 area before retreating marginally. Still, the USD index remains elevated, clinging to the upper end of the extended trading range. After the rally, the USD index has steadied, holding above the 104.00 figure during the early European hours. In recent trading, the dollar was changing hands around 104.39, up 0.1% on the day. A daily close above the 104.40 zone would bring some more short-term bullishness back into the game. Meanwhile, EURUSD derived support around the 1.0800 figure to bounce slightly after a sell-off. In early European trading on Wednesday, the euro has settled around 1.0827, shedding 0.03% on the day. On the weekly charts, the technical picture looks constructive while above 1.0800.
GBPUSD
The pound turned slightly defensive on Tuesday, staying under some pressure today after last week’s slump amid dollar strength. Following a brief dip to 1.2575, the pair has corrected higher partially, but failed to extend recovery as USD demand reemerged. As the cable managed to finish slightly above 1.2600 last week, the prices could try to resume the ascent in the days to come if dollar refrains from another bull run. In recent trading, GBPUSD held slightly negative, struggling to attract renewed demand. In a wider picture, the technical outlook looks neutral as long as the pair oscillates around the 1.2600 figure. The daily RSI is now slightly bearish in neutral territory, suggesting potential sellers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2621, down 0.1%03 on the day. On the flip side, the immediate significant support is now represented by the 1.2600 figure, followed by the mentioned lows around 1.2575.
USDJPY
USDJPY resumed the ascent after some hesitation to register fresh multi-year highs just a few pips below the 152.00 figure as the yen continued to lose ground despite the Bank of Japan’s decision to raise interest rates last week. On Wednesday, the pair holds steady above 151.50, deciding on the further direction. 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. On the upside, the dollar is now facing the 152.00 key barrier. The pair was last seen changing hands around 151.80, up 0.16% on the day. Now, the greenback needs to hold above the 151.00 region in order to extend the ascent to fresh 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 151.00 area, but it looks like the path of least resistance remains to the upside so far despite overbought conditions.
XAUUSD
Gold prices rallied to fresh all-time highs above $2,200 last week, digesting the outcome of the Fed meeting. The bullion peaked at $2,225 before retreating from fresh tops amid some profit-taking. Still, the XAUUSD pair stays relatively resilient on Wednesday, 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. In early European deals, the XAUUSD pair is changing hands around $2,176 at the time of writing, down 0.02% 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 $2,180 zone, followed by $2,200. Downside risks are limited while above the $2,100 region. Should dollar demand reemerge in the near term, the bullion may threaten the $2,150 support zone.
