Buyers stay on the sidelines ahead of a key US CPI report due later in the day
EURUSD
The US dollar finished lower on Tuesday, losing ground since the start of the week as buyers stay on the sidelines ahead of a key US CPI report due later in the day. The USD failed to hold above the 105.00 figure to find support just above 104.80. The technical outlook has deteriorated further after a break below the 105.00 psychological support for the first time in more than a week. On Wednesday, the greenback staying negative, struggling to regain the upside bias in early European deals. In recent trading, the dollar was changing hands around 104.83, shedding 0.17% on the day. A daily close below 105.00 would add to short-term bearishness surrounding the buck. Meanwhile, EURUSD extends the ascent on Wednesday, extending its recovery from local lows. The pair has settled above the 1.0800 zone amid the persisting selling pressure surrounding the dollar. In European trading on Wednesday, the single currency has settled around 1.0830, adding 0.11% on the day. On the weekly charts, the technical picture looks upbeat as well. Now, the pair needs to hold above the 1.0800 zone in order to stay afloat.
GBPUSD
The pound stays bullish on Wednesday, extending the bounce from multi-month lows registered last month just below 1.2300. The pair climbed back above 1.2600 to extend its ascent to the 1.2616 figure. Following the rally, the pair has settled around the upper end of the trading range, suggesting the upside bias could persist in the near term. GBPUSD jumped due to a weaker dollar and some improvement in risk sentiment across the financial markets. In recent trading, GBPUSD has settled in positive territory, with demand persisting. In a wider picture, the technical outlook has improved somehow after the pair settled above the 1.2600 figure. The daily RSI is now bullish in neutral territory, suggesting potential sellers could stay out of the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2611, up 0.18% on the day. On the flip side, the immediate significant support is now represented by the 1.2600 region, followed by the 1.2560 zone.
USDJPY
USDJPY turned negative on Wednesday after seven days of gains 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 156.00 mark. On Wednesday, the pair came under pressure as the greenback retreats across the board. Earlier in the session, the greenback peaked at 156.55 to turn negative on the day as traders opted to take some profit. On the upside, the dollar is now facing the 156.00 key immediate barrier. The pair was last seen changing hands around 155.62, down 0.52% on the day. Now, the greenback needs to hold above the 155.50 region in order to stay afloat. The daily RSI turned bearish, suggesting the pair could refrain from a local bounce in the near term. Should the pressure intensify, the dollar may derail the mentioned support area, but it looks like the pair will resume the ascent after a pause.
XAUUSD
Gold prices failed to extend the ascent at the start of the week to suffer solid losses on Monday. However, the bullion shrugged off the pressure the next day, extending a local rally on Wednesday. the ascent was capped by the $2,380 region in recent trading. As such, the XAUUSD pair looks bullish in early European trading, but prices are hesitating to extend the ascent in the near term as the bullion is holding below the mentioned intraday highs. The downside potential looks limited at this stage. In recent deals, the XAUUSD pair was changing hands around $2,379, up 0.81% on the day. On the weekly timeframes, the technical picture has improved somewhat, with wider picture remaining upbeat after reaching fresh all-time highs last month. On the upside, the immediate significant target is now represented by the $2,385 zone, followed by $2,400. Downside risks look limited while above the $2,350 region. Should dollar demand reemerge in the near term, the bullion may get back below this zone to erase recent gains.
