Gold is about to refresh all-time highs
EURUSD
Following some recovery from 2024 lows, the US dollar is back under pressure this week. The USD index saw a solid sell-off during the previous session as PPI data came in lower than expected, thus adding to Fed rate cut expectations. On Wednesday, the greenback looks steadier, but remains vulnerable to further losses in the near term. The buck seems to have found a local bottom around 102.55, struggling to attract demand on a dip, however. At the start of the week, the bullish momentum was capped by the 103.30 region, and the dollar has been on the defensive since then. The DXY now tries to hold above the mentioned support zone in anticipation of US CPI data. If the report confirms a slower growth in consumer prices for July, the selling pressure may reemerge later in the day. As the buck remains weak, EURUSD keeps climbing for the third session in a row to notch fresh 2024 highs above 1.1000 in recent trading. As a result, the daily RSI is now flirting with overbought conditions, suggesting a local pullback could be expected after a rally. The single currency was last seen changing hands around 1.1018, up 0.24% on the day.
GBPUSD
The pound came under some pressure on Wednesday after the recent rally that was capped by the 1.2870 zone during the previous session. As such, GBPUSD continues to flirt with now descending 20-DMA, holding above the 1.2800 figure. As a reminder, last week, the cable saw five-week lows around 1.2660, just a few pips above the ascending 200-DMA which capped the downside pressure. As such, the pair turned bearish today despite dollar weakness, suggesting the prices could struggle to regain the upside momentum in the near term. On the four-hour charts, however, the RSI turned neutral, while the pair holds above the key SMAs, suggesting the pressure could ease soon. In a wider picture, the technical outlook remains neutral-to-negative so far, with GBPUSD seeing the first gain after four weeks of losses in a row. In recent trading, GBPUSD was changing hands around 1.2841, down 0.11% on the day. On the upside, the immediate significant resistance is now represented by the 1.2870 level, followed by the 1.2900 figure. While above the 200-DMA, today at 1.2665, bearish risks are limited.
USDJPY
After last week’s plunge to late-2023 lows, the USDJPY pair looks steady these days, oscillating around 147.00. The dollar briefly fell to 141.70 where buyers reemerged to push the prices to the psychological level. During the previous session, the pair saw some losses, trying to regain a bullish slope on Wednesday. USDJPY still lacks the upside momentum, suggesting downside risks surrounding the dollar continue to persist. During the European session, USDJPY has settled slightly above 147.00, trying to extend the recovery as the pair turned positive after yesterday’s slide. Earlier in the session, the ascent was capped by the 147.50 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 closure above 147.00 would somehow improve the technical outlook. The pair was last seen changing hands around 147.09, up 0.19% on the day. The daily RSI remains in oversold territory, but the pair could refrain from sustained bearish attempts in the near term. Should the pressure reemerge, the dollar may get back below the 146.00 figure later in the week.
XAUUSD
Gold prices continue the ascent due to dollar weakness, with demand reemerging after a local slide witnessed on Tuesday. Earlier in the day, the XAUUSD pair found support just below the $2,500 figure to attract renewed demand on a dip. As a result, the bullion has settled slightly below all-time highs registered around $2,520 earlier in the month. The momentum stays strong after posting historical highs which could be refreshed in the near term, especially as the dollar remains weak. As such, the precious metal now holds above the key SMAs, flirting with the $2,500 psychological level that represents the nearest support at this stage. The downside potential remains limited, and the broader outlook stays bullish in anticipation of a Fed rate cut. In recent deals, the XAUUSD pair was changing hands around $2,513, up 0.22% on the day. On the weekly timeframes, the technical picture stays positive, with the RSI pointing north, approaching the overbought territory. On the downside, the immediate significant support is now represented by the ascending 20-DMA, today at $2,420, followed by the $2,400 region.
