The dollar keeps retreating across the market for the third session in a row
EURUSD
The US dollar stays under pressure on Thursday, losing ground for the third session in a row. 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 across the market. In recent trading, the dollar was changing hands around 104.13, down 0.11% on the day. A daily close above the 104.50 zone would bring some more short-term bullishness back into the game. Meanwhile, EURUSD keeps rallying since Tuesday despite the rising ECB rate cut expectations. In European trading on Thursday, the single currency has settled around 1.0859, adding 0.22% on the day. On the weekly charts, the technical has improved after a jump above the 1.0800 figure. Now, the 1.0870 zone represents the immediate upside target for the shared currency. In a wider picture, EURUSD looks neutral so far this year after a bounce from the 1.0700 region in February.
GBPUSD
The pound has been rising for the third day in a row on Thursday, staying resilient due to dollar weakness. Following a brief dip to 1.2540, the pair managed to bounce strongly, now trading back above the 1.2600 that has turned into support. Should the cable manage to finish slightly above 1.2650 on a daily closing basis, the short-term outlook will improve further. 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 bullish in neutral territory, suggesting potential buyers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2659, up 0.06% on the day. On the flip side, the immediate significant support is now represented by the 1.2600 figure, followed by the 1.2570 region and the 1.2540 zone that capped losses earlier in the day.
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 Thursday, 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 0.02% 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 $2,320 earlier on Thursday, 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 above $2,300 at the time of writing, down 0.13% 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 $2,323 zone, followed by $2,340. Downside risks are limited while above the $2,200 region. Should dollar demand reemerge in the near term, the bullion may threaten the $2,300 immediate support zone.