The selling pressure may reemerge if fresh economic reports disappoint
EURUSD
After a plunge to early-2024 lows at the start of the week, the US dollar makes some recovery attempts these days. However, the momentum looks too modest and indecisive to bet on sustained gains in the near term as recession fears continue to fuel Fed rate cut expectations. The USD index found a bottom just above the 102.00 figure before bouncing marginally. On Wednesday, the price briefly climbed to 103.37 before losing the impetus today. The greenback tries to hold above the 103.00 mark in anticipation of US jobless claims data. If the report disappoints, the selling pressure may reemerge later in the day. As the buck remains weak, EURUSD turned positive on Thursday after the recent retreat from fresh 2024 highs seen around 1.1000 on Monday. On the upside, the key target now arrives at 1.0945, followed by 1.0965. In European trading on Thursday, the single currency has settled at 1.0927, up 0.06% on the day. On the weekly charts, the broader technical picture remains bearish, with the euro holding in positive territory so far.
GBPUSD
The pound keeps sliding since peaking around one-year highs in mid-July. This week, the GBPUSD derailed the 100-DMA to register five-week lows on Wednesday. The cable saw a local bottom around 1.2660, just a few pips above the ascending 200-DMA which could cap the downside pressure. As such, the pair remains bearish despite dollar weakness, suggesting the prices could extend the decline in the near term. On the four-hour charts, the RSI retains a negative slope, and the pair stays below the key SMAs, suggesting the pressure could persist these days. In a wider picture, the technical outlook keeps deteriorating, with GBPUSD seeing the fourth weekly loss in a row. In recent trading, GBPUSD was changing hands around 1.2670, down 0.15% on the day. On the upside, the immediate significant resistance is now represented by the 1.2700 level, followed by the 1.2735 and the 1.2800 intermediate barrier on the way towards the descending the 20-DMA, today at 1.2860.
USDJPY
The yen extended its ascent to late-2023 highs at the start of the week before reversing. The USDJPY pair briefly fell to 141.70 where buyers reemerged to push the greenback above 146.00. During the previous session, the pair climbed to the 147.90 zone, but failed to preserve gains and retreated partially, suggesting downside risks surrounding the dollar continue to persist. On Thursday, USDJPY has settled slightly above 146.00, looking ready to extend the decline as the pair turned negative after a two-day bounce. Earlier in the session, the ascent was capped by the 146.87 region as the yen’s overall strength continues to persist. As such, the pair remains vulnerable to fresh losses in the near term. In the immediate term, a daily and weekly closure above 147.00 would somehow improve the technical outlook. The pair was last seen changing hands around 146.07, down 0.42% on the day. The daily RSI remains in oversold territory, but the pair could refrain from sustained bullish attempts in the near term. Should the pressure intensify, the dollar may get back below the 145.50 region ahead of the weekend.
XAUUSD
Gold prices have ben mostly lower this week as the buying interest has ebbed. Following finding support around $1,2364, where the 55-DMA lies, the yellow metal attracted some demand to settle slightly below the $2,400 zone on Thursday. The momentum has waned since posting fresh all-time highs above $2,500 earlier in the month. As such, the precious metal now holds between the key SMAs, flirting with the $2,400 psychological level that represents the barrier support at this stage. The downside potential persists, but looks limited so far, and the broader outlook remains positive in anticipation of a Fed rate cut. In recent deals, the XAUUSD pair was changing hands around $2,398, up 0.20% on the day. On the weekly timeframes, the technical picture stays positive, albeit the RSI is pointing lower. On the downside, the immediate significant support is now represented by the mentioned 550-DMA, followed by the $2,350 region and the $2,345 zone where the ascending 100-day SMA arrives.
