The greenback rebounded aggressively from the two-week lows to get back above the 105.00 figure
EURUSD
The US dollar rallied across the board on Wednesday following the strong US inflation data. The CPI rose 3.5% on a yearly basis in March to come in above the market expectation of 3.4%. On a monthly basis, the CPI and the core CPI both rose 0.4%. Against this backdrop, the greenback rebounded aggressively from the two-week lows to get back above the 105.00 figure. The dollar climbed to fresh five-month tops in the 105.30 area, preserving gains so far. In recent trading, the dollar was changing hands around 105.24, up 0.01% on the day. A daily close above the 105.20 zone would add short-term bullishness surrounding the US currency. Meanwhile, EURUSD keeps trending mostly higher these days, looking muted ahead of the ECB meeting due later in the day. In European trading on Thursday, the single currency has settled around 1.0742, shedding 0.01% on the day. On the weekly charts, the technical picture looks bearish after the recent slide. Now, the 1.0800 zone represents the immediate significant upside target for the shared currency. In a wider picture, EURUSD looks bearish so far this year.
GBPUSD
The pound came under strong selling pressure on Wednesday as the dollar rose across the board. Following a brief dip to 1.2519, the pair managed to bounce partially, now trading back above the 1.2550 zone that has turned into support in recent trading. Should the cable manage to finish slightly above this region on a daily closing basis, the short-term outlook will improve somehow. In recent trading, GBPUSD has settled in positive territory, struggling to attract more decisive demand. In a wider picture, the technical outlook looks bearish as long as the pair holds below 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 1.2561, up 0.24% on the day. On the flip side, the immediate significant support is now represented by the 1.2530-1.2520 region, followed by the 1.2500 mark.
USDJPY
USDJPY has been steady for a month already, clinging to the upper end of the trading range since mid March when the dollar bounced from local lows. On Wednesday, the pair rallied to fresh multi-year highs in the 153.25 area, retaining bullish bias today. 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 recent gains. On the upside, the dollar is now facing the 153.30 key barrier. The pair was last seen changing hands around 153.11, up 0.02% on the day. Now, the greenback needs to hold above the 153.00 region in order to extend the ascent to mentioned tops. The daily RSI is now upbeat, suggesting the pair could refrain from a bearish attempt in the near term. Should the pressure reemerge, the dollar may derail the 153.00 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 $2,384 earlier in the week, staying close to the upper end of the extended trading range despite overbought conditions. The XAUUSD pair looks resilient in early European trading on Thursday after yesterday’s dip, with prices looking ready to resume 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 around $2,354, up 0.26% 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 $2,370 zone, followed by $2,385. Downside risks are limited while above the $2,300 region. Should dollar demand persist in the near term, the bullion may threaten the $2,340 immediate support zone.