The US Dollar continued its recovery and is likely to close the week with gains. The markets are sparse today with not much of data to go by, and the currency markets are likely to stay flat for the most part. US GDP data is awaited later in the afternoon.
EURUSD Daily Analysis
EURUSD (1.11): EURUSD closed with a doji candlestick pattern yesterday after four days of consecutive declines. Today's price action will be critical in this regards as a bullish reversal could see a short-term recovery in prices. EURUSD remains flat and is likely to remain the same today. Support comes in at 1.113 - 1.1105 and resistance comes at 1.12, the recently cleared level. The 4-hour chart shows a bullish engulfing candlestick formed a few sessions ago which will likely keep the bias to the upside towards 1.12.
USDJPY Daily Analysis
USDJPY (113.16): USDJPY managed to clear the doji pattern formed two days ago. Price action remains capped by the 20 day moving average on the daily chart while price sits above 112 support. On the 4-hour chart, the hidden bearish divergence continues to play out and in this regards, 112.5 support will be the focus. A break below 112.5 could send USDJPY lower towards the next support at 112 and eventually to 111.31.
GBPUSD Daily Analysis
GBPUSD (1.41): GBPUSD managed to close bullish yesterday following the three days of strong declines. Dynamic support off the median line on the daily chart is likely to keep prices biased to the upside. The daily Stochastics is also likely to post a higher lower if the next few sessions manage to close higher. On the 4-hour chart, any pullbacks to the broken support at 1.424 - 1.426 will likely keep the downside pressure. Support at 1.4025 - 1.40 is important to stem further declines.
Gold Daily Analysis
XAUUSD (1217): Gold prices have moved strongly lower following the reversal off the $1250 handle earlier this week. Prices are currently at 1217 and seeking dynamic support off the lower median line on the daily chart, which could indicate a potential move to the upside, but is limited to the previous low formed at 1230. The bias in Gold clearly is to the downside with 1200 most likely to be tested.