The USD index extended gains above the 106.00 figure to find a local resistance around 106.50
EURUSD
The US dollar saw solid gains overnight as investors awaited the upcoming Fed decision. In the process, the USD index extended gains above the 106.00 figure to find a local resistance around 106.50 earlier today. At the start of the week, the buck came under renewed selling pressure across the board, but managed to shrug off bearishness. In recent trading on Wednesday, the dollar was changing hands around 106.41, adding 0.17% on the day. A daily close above this zone would bring even more short-term bullishness into the game. Meanwhile, EURUSD saw deep losses on Tuesday, staying on the defensive today. The pair briefly dipped to the 1.0650 zone amid dollar rally before bouncing slightly. In European trading on Wednesday, the single currency has settled around 1.0663, shedding 0.02% on the day. On the weekly charts, the technical picture looks neutral after a slide. Now, the pair needs to hold above the 1.0600 zone in order to stay afloat.
GBPUSD
The pound is back on the defensive after a brief rally witnessed at the start of the week. The pair extended its ascent to the 1.2570 figure for the first time since April 12 before reversing gains. Following the rally, the pair has retreated to turn unchanged on the weekly timeframes. GBPUSD slipped due to a stronger dollar and some deterioration in risk sentiment across the financial markets. However, should the cable manage to finish above the 1.2500 region on a daily closing basis, the short-term outlook will improve further. In recent trading, GBPUSD has settled in negative territory, trying to attract some demand. In a wider picture, the technical outlook has deteriorated somehow after the pair fell below the 1.2500 figure. The daily RSI is now bearish in neutral territory, suggesting potential buyers could stay out of the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2487, down 0.02% on the day. On the flip side, the immediate significant support is now represented by the 1.2425 region, followed by the 1.2400 zone.
USDJPY
The yen is back under pressure after a spike witnessed at the start of the week. The USDJPY pair rallied above the 160.00 figure for the first time in 34 years before erasing all its gains for the day on Monday. After peaking at 160.20, the dollar has retreated below 155.00 amid aggressive profit-taking. However, the pair managed to bounce the next day, preserving the upside bias on Wednesday. Earlier in the session, the greenback derived support from the 157.70 area to turn slightly positive. During the bounce, the pair reversed previous losses to turn unchanged for the week. On the upside, the dollar is now facing the 158.00 key barrier. The pair was last seen changing hands around 157.94, up 0.09% on the day. Now, the greenback needs to hold above the 157.50 region in order to retain bullishness. The daily RSI is now bullish, suggesting the pair could refrain from another sell-off in the near term. Should the pressure reemerge, the dollar may derail the 157.00 area, but it looks like the path of least resistance remains to the upside so far at this stage.
XAUUSD
Gold prices failed to extend last week’s modest ascent to come under renewed pressure after a rally to fresh all-time highs around $2,448 earlier in the month. The XAUUSD pair looks slightly bearish in early European trading on Wednesday, with prices looking ready to extend the retreat in the near term as the prices derailed the $2,300 support zone in recent trading. As such, the downside potential persists at this stage, as investors may continue to take profit. In recent deals, the XAUUSD pair was changing hands around $2,296, down 0.29% on the day. On the weekly timeframes, the technical picture has deteriorated further, with wider picture remaining upbeat after reaching fresh all-time highs. On the upside, the immediate significant target is now represented by the $2,320 zone, followed by $2,350. Downside risks persist while below the $2,300 region. Should dollar demand persist in the near term, the bullion may get back below the $2,290 zone to refresh nearly one-month lows.
