A daily close above 105.70 would add to short-term bullishness surrounding the buck
EURUSD
The US dollar finished higher overnight as trading has picked up after a muted start to the week. The USD extended its bounce from a local low of 104.87 to settle above 105.50. On Thursday, the greenback keeps trending north, retaining an upside bias in early European deals after finding a local support around 105.50 in recent trading. In recent trading, the dollar was changing hands around 105.70, adding 0.16% on the day. A daily close above this region would add to short-term bullishness surrounding the buck. Meanwhile, EURUSD stays under some pressure on Thursday after the recent slide from local highs. The pair dipped below the 1.0750 zone amid some revival of demand surrounding the dollar. In European trading on Thursday, the single currency has settled around 1.0728, shedding 0.15% on the day. On the weekly charts, the technical picture looks neutral. Now, the pair needs to hold above the 1.0700 zone in order to stay afloat.
GBPUSD
The pound remains on the defensive after a brief rally witnessed at the start of the week. The pair extended its ascent to the 1.2595 figure before reversing gains. Following the rally, the pair has retreated to turn bearish on the weekly timeframes. GBPUSD slipped due to a stronger dollar and some deterioration in risk sentiment across the financial markets. In recent trading, GBPUSD has settled in negative territory, struggling to attract demand. In a wider picture, the technical outlook has deteriorated somehow after the pair settled 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 1.2476, down 0.16% on the day. On the flip side, the immediate significant support is now represented by the 1.2460 region, followed by the 1.2400 mark.
USDJPY
The Japanese yen is back under pressure, with USDJPY adding to gains for the fourth session in a row. In late-April, the pair rallied above the 160.00 figure for the first time in 34 years before erasing all its gains. However, after a brief slide below 152.00, the greenback bounced to regain the 155.00 mark. As such, the pair preserves the upside bias on Thursday. Earlier in the session, the greenback derived support from the 155.15 area to turn positive on the day. During the bounce, the pair has partially reversed last week’s losses. On the upside, the dollar is now facing the 156.00 key immediate barrier. The pair was last seen changing hands around 155.82, up 0.22% on the day. Now, the greenback needs to hold above the 155.50 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 mentioned support 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 the ascent at the start of the week and has been trending mostly lower since then. The bullion came under renewed pressure after a local rally that was capped by the $2,340 region at the start of the week. The XAUUSD pair looks slightly bearish in early European trading on Thursday, but prices are hesitating to extend the retreat in the near term as the bullion is holding around the $2,320 support zone so far. As such, the downside potential persists but looks limited at this stage. In recent deals, the XAUUSD pair was changing hands around $2,318, down 0.18% on the day. On the weekly timeframes, the technical picture has deteriorated somewhat, with wider picture remaining upbeat after reaching fresh all-time highs a month ago. On the upside, the immediate significant target is now represented by the $2,340 zone, followed by $2,360. Downside risks look limited while above the $2,300 region. Should dollar demand intensify in the near term, the bullion may get back below this zone to refresh local lows.
