The dollar climbed to fresh mid-February highs in the 104.70 after a break above the 104.50 zone
EURUSD
The US dollar rallied on Thursday, extending its gains for the third session in a row. The greenback was lifted by the recent deterioration in risk sentiment along with relatively hawkish comments from Fed’s Waller, who warned the central bank may need to hold current rate for longer than expected. The dollar climbed to fresh mid-February highs in the 104.70 after a break above the 104.50 zone that had been capping gains since last week. In recent trading, the dollar was changing hands around 104.70, up 0.34% on the day. A daily close above the 104.50 zone would bring some more short-term bullishness back into the game. Meanwhile, EURUSD stays pressured by rather weak economic data, with rising the ECB rate cut expectations adding to a cautious tone surrounding the euro. In European trading on Thursday, the euro has settled around 1.0780, shedding 0.42% on the day. On the weekly charts, the technical picture turned bearish after a failure to hold above 1.0800.
GBPUSD
The pound turned defensive on Thursday, 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. The cable managed to finish slightly above 1.2600 last week to break below this level earlier in the day amid the rallying greenback. In recent trading, GBPUSD stayed in negative territory, 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 bearish in neutral territory, suggesting potential sellers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2593, down 0.35 on the day. On the flip side, the immediate significant support is now represented by the 1.2575 figure, followed by the 1.2550 region.
USDJPY
USDJPY resumed the ascent after some hesitation to register fresh multi-year highs just a few pips below the 152.00 figure during the previous session as the yen continued to lose ground despite the Bank of Japan’s decision to raise interest rates last week. On Thursday, the pair holds steady around 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 marginally 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 151.46, up 0.1% 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 before retreating partially amid profit-taking. The bullion peaked at $2,225 to attract some selling pressure. The XAUUSD pair stays resilient on Thursday, 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 $2,217 at the time of writing, up 0.23% 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 $2,225 zone, followed by $2,240. Downside risks are limited while above the $2,100 region. Should dollar demand intensify in the near term, the bullion may threaten the $2,200 support zone.
