The greenback managed to bounce partially from weekly lows due to a relatively hawkish tone from the Fed
EURUSD
The US dollar finished lower on Wednesday to see steep losses earlier in the day after weak inflation data. However, the greenback managed to bounce partially from weekly lows due to a relatively hawkish tone from the Fed. After a brief dip towards local lows around 104.25, the greenback closed the day around 104.70, staying below the 105.00 figure so far. Earlier on Thursday, the dollar extended recovery towards the 105.85 zone before retreating marginally. As such, the USD index turned slightly bullish today, but lacks the momentum to break above the 105.00 psychological figure. In recent trading, the dollar was changing hands around 104.75, up 0.1% on the day. Meanwhile, EURUSD looks steady after yesterday’s rally towards 1.0850. The pair now holds slightly above 1.0800, deciding on further direction. In European trading on Thursday, the single currency has settled around 1.0816, adding 0.08% on the day. On the weekly charts, the broader technical picture remains negative after an earlier slide.
GBPUSD
The pound rallied on Wednesday as the greenback fell across the board. Earlier in the week, the pair bounced from June lows seen around 1.2687 to see a three-day ascent. GBPUSD extended gains to 1.2860 for the first time in three months to come off to the upper end of the intraday range during the European session on Thursday. As such, the cable stays above the 1.2700 level, with buyers cautious after the latest volatility spike. The fact that the pair refrains from a more sustainable bounce suggests the downside bias could reemerge in the near term. In recent trading, GBPUSD has settled in negative territory, with downside pressure limited at this stage. In a wider picture, the technical outlook looks neutral despite the recent jump. The daily RSI is now slightly bearish in neutral territory, suggesting potential sellers could stay in the game in the immediate term. In recent trading, GBPUSD was changing hands around 1.2788, down 0.06% on the day. On the flip side, the immediate significant support is now represented by the 1.2760 region.
USDJPY
USDJPY regained bullish bias on Thursday, resuming its ascent after yesterday’s brief dip to weekly lows around 155.70. As the upside momentum persists, the pair stays elevated after recovery from the mentioned lows. After a dip, the pair jumped back above the 157.00 figure but continued to refrain from challenging the 157.50 barrier. The latest ascent was capped by the 157.32 zone, while the greenback now needs to stay above the 157.00 figure on a daily closing basis. The pair was last seen changing hands around 157.27, up 0.36% on the day. Now, the buck needs to hold above the 156.70 region in order to stay afloat and make fresh bullish attempts, with multi-year highs around 160.00 in focus. The daily RSI stays bullish, suggesting the pair could refrain from sustained bearish attempts in the near term. Should the pressure reemerge, the dollar may derail the 157.00 support, but it looks like the pair will extend the ascent in the days to come.
XAUUSD
Gold prices look mixed-to-bearish on Thursday, steadying after a brief jump witnessed during the previous session amid dollar weakness. The bullion keeps struggling, staying under a modest bearish pressure, with $2,300 representing the intermediate support on the way to fresh local lows. Now, the XAUUSD pair needs some momentum to make a more decisive bounce, with prices struggling for direction so far today. The downside potential looks limited at this stage, however. In recent deals, the XAUUSD pair was changing hands around $2,332, down slightly on the day. On the weekly timeframes, the technical picture has improved marginally, with wider picture remaining upbeat after reaching fresh all-time highs. On the upside, the immediate significant target is now represented by the $2,340 zone, followed by the $2,360 region that capped gains on Wednesday. Downside risks look limited while above the $2,300 figure.
