The greenback climbed to five-month tops in the 105.10 area before retreating partially
EURUSD
The US dollar looks steady on Wednesday, struggling for direction after yesterday’s retreat from fresh mid-November highs. Earlier, the greenback was lifted by the recent deterioration in risk sentiment along with relatively hawkish comments from Fed. The dollar climbed to five-month tops in the 105.10 area before retreating partially during the previous session. In recent trading, the dollar was changing hands around 104.77, down 0.05% on the day. A daily close above the 104.80 zone would bring some more short-term bullishness back into the game. Meanwhile, EURUSD has been recovering since Tuesday, but rising the ECB rate cut expectations continue to cap demand for the euro. In European trading on Wednesday, the single currency has settled around 1.0776, adding 0.07% on the day. On the weekly charts, the technical picture stays relatively bearish after a failure to hold above the 1.0800 figure that represents the immediate upside target for the shared currency.
GBPUSD
The pound looks directionless on Wednesday, trying to shrug off the recent pressure witnessed at the start of the week. Following a brief dip to 1.2540, the pair managed to bounce partially but still stayed below the 1.2600 figure that represents the immediate upside target for GBP buyers at this stage. Should the cable manage to finish slightly above 1.2600 on a daily closing basis, the short-term outlook will improve slightly. In recent trading, GBPUSD has settled in positive territory, struggling to attract more decisive 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 directionless in neutral territory, suggesting potential sellers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2581, up 0.03% on the day. On the flip side, the immediate significant support is now represented by the 1.2560 figure, followed by the 1.2540 region that capped losses yesterday.
USDJPY
USDJPY holds steady since last week when the dollar briefly registered 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 month. On Wednesday, the pair looks slightly positive above 151.50. 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 above the flat line, still preserving most of the previous gains. On the upside, the dollar is now facing the 152.00 key barrier. The pair was last seen changing hands around 151.72, up 0.12% on the day. Now, the greenback needs to hold above the 151.50 region in order to resume the ascent to mentioned tops. The daily RSI is now marginally 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 $2,300 earlier on Wednesday, staying close to the upper end of the extended trading range despite overbought conditions. The XAUUSD pair stays resilient in early European trading, with prices looking ready to extend the ascent in the near term. Still, the downside potential persists at this stage, as investors may take profit more aggressively after the spike. In recent deals, the XAUUSD pair was changing hands just below $2,300 at the time of writing, up 0.53% 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 all-time highs in the $2,308 zone, followed by $2,320. Downside risks are limited while above the $2,200 region. Should dollar demand reemerge in the near term, the bullion may threaten the $2,280 support zone.