The greenback slipped below the 106.00 figure to find a local support around 105.60
EURUSD
The US dollar saw solid losses during the previous session as traders were disappointed by weak manufacturing data out of the US. In the process, the USD index slipped below the 106.00 figure to find a local support around 105.60 earlier today. As such, after peaking around 106.50 this month, the USD index has settled below 106.00, refraining from a deeper correction at this stage. The greenback rallied aggressively earlier in April amid safe-haven flows and ebbing Fed rate cut expectations due to stubbornly high inflation. In recent trading, the dollar was changing hands around 105.81, adding 0.13% on the day. A daily close above the 106.00 zone would bring some short-term bullishness back into the game. Meanwhile, EURUSD extended its bounce from late-October lows, trending higher since mid-April. Earlier on Wednesday, the pair briefly derailed the 1.1700 zone but failed to attract more decisive demand. In European trading, the single currency has settled around 1.0690, losing 0.08% on the day. On the weekly charts, the technical picture still remains bearish after a slide witnessed earlier in the month. Now, the 1.0700 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 extended its retreat at the start of the week to briefly derail the 1.2300 figure for the first time since November. Following the plunge, the pair managed to bounce partially, but stayed bearish. GBPUSD rallied during the previous session dur to a weaker dollar and some improvement in risk sentiment across the financial markets. Should the cable manage to finish slightly above the 1.2400 region on a daily closing basis, the short-term outlook will improve marginally. In recent trading, GBPUSD has settled in negative territory, trying to attract some demand. In a wider picture, the technical outlook remains bearish as long as the pair holds below the 1.2500 figure. The daily RSI is now bearish in neutral territory, suggesting potential buyers could stay on the sidelines in the immediate term. In recent trading, GBPUSD was changing hands around 1.2430, down 0.14% on the day. On the flip side, the immediate significant support is now represented by the 1.2400 region, followed by the 1.2370 zone.
USDJPY
USDJPY keeps clinging to the upper end of the trading range since mid-March, when the dollar bounced from local lows. The pair holds around multi-year highs registered on Wednesday just a few pips below the 155.00 figure. Earlier last month, 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 long-term highs, still preserving recent gains. On the upside, the dollar is now facing the 155.00 key barrier. The pair was last seen changing hands around 154.88, up 0.04% on the day. Now, the greenback needs to hold above the 154.50 region in order to extend the ascent. The daily RSI is now neutral, suggesting the pair could refrain from a bearish attempt in the near term. Should the pressure reemerge, the dollar may derail the 154.55 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 around $2,448 earlier in the month before retreating marginally amid overbought conditions. The XAUUSD pair looks slightly bearish in early European trading on Wednesday, with prices looking ready to extend the slide in the near term after yesterday’s brief dip towards the $2,300 support zone. As such, the downside potential persists at this stage, as investors may continue to take profit more aggressively after the spike. In recent deals, the XAUUSD pair was changing hands around $2,331, down 0.43% on the day. On the weekly timeframes, the technical picture has deteriorated, 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 $2,400. Downside risks are limited while above the $2,300 region. Should dollar demand reemerge in the near term, the bullion may stay on the defensive below the $2,350 zone that has turned back into resistance after the recent decline.