The dollar index struggles to attract mode decisive demand
EURUSD
The US dollar finished higher on Tuesday after a brief dip towards mid-May lows around 104.30 earlier in the day as traders opted to buy on a dip. On Wednesday, the greenback retains bullish bias, but still lacks the upside momentum to retarget the 105.00 psychological level that capped gains last week. As such, the USD index struggles to attract mode decisive demand, oscillating around the 104.70 figure in anticipation of fresh drivers. The technical outlook has deteriorated after a failure to break above the 105.00 figure. In recent trading, the dollar was changing hands around 104.76, adding 0.14% on the day. Meanwhile, EURUSD failed to make a sustained bounce as dollar demand reemerged. The pair trades around the 1.0850 zone, deciding on further direction. In European trading on Wednesday, the single currency has settled around 1.0840, shedding 0.13% on the day. On the weekly charts, the technical picture remains upbeat despite the recent slide.
GBPUSD
The pound rallied to two-month highs during the previous session before paring gains. GBPUSD shrugged off the recent pressure to see fresh highs around 1.2800. However, the pair failed to preserve gains and has retreated since then. The cable has settled above the 1.2700 level even as buyers look indecisive after the recent jump. As such, the pair stayed around the upper end of the trading range, suggesting the upside bias could persist in the near term. In recent trading, GBPUSD has settled in negative territory, with downside pressure looking limited at this stage. In a wider picture, the technical outlook has improved after the latest ascent. The daily RSI is now slightly bullish in neutral territory, suggesting potential buyers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2758, down 0.02% on the day. On the flip side, the immediate significant support is now represented by the 1.2745 region, followed by the 1.2700 zone.
USDJPY
USDJPY looks directionless in muted trading on Wednesday, staying elevated after recovery from local lows seen around 153.60 earlier in the month. After a dip, the pair jumped back above the 157.00 figure, staying resilient these days. The ascent is now being capped by the 157.40 zone that represents the immediate upside target for the time being. The pair was last seen changing hands around 157.16, unchanged for the day. Now, the greenback needs to hold above the 157.00 region in order to stay afloat and make fresh bullish attempts, with multi-year highs around 160.00 in focus. The daily RSI stays directionless, suggesting the pair could refrain from decisive moves in the near term. Should the pressure reemerge, the dollar may derail the mentioned support area, followed by the 156.55 intermediate support, but it looks like the pair will resume the ascent after some hesitation.
XAUUSD
Gold prices turned back bearish in recent trading after yesterday’s jump that was capped by the $2,365 zone. The bullion failed to shrugg off the pressure and retarget the $2,400 region that represents the intermediate barrier on the way to all-time highs seen around $2,455 earlier in the month. Since then, the XAUUSD pair has retreated partially as prices are hesitating to extend the ascent, with the bullion holding below the mentioned historical highs. The downside potential looks limited at this stage, however. In recent deals, the XAUUSD pair was changing hands around $2,343, down 0.57% on the day. On the weekly timeframes, the technical picture has deteriorated somehow, with wider picture remaining upbeat after reaching fresh all-time highs. On the upside, the immediate significant target is now represented by the $2,400 zone, followed by the mentioned record tops. Downside risks look limited while above the $2,300 region. Should dollar demand intensify in the near term, the bullion may see a deeper retreat.
