• Latest
  • Trending
  • All
A slow start to the week in FX markets

Dollar, yen on the defensive amid risk-on tone

December 29, 2020 05:39
Equities struggle amid economic and China-related concerns

Equities struggle amid economic and China-related concerns

December 29, 2022 08:55
Dollar lacks upside momentum due to lower Treasury yields

Currencies stuck in ranges as New Year holiday looms

December 28, 2022 07:01
Stocks gain, dollar eases ahead of job market data

Dollar pressured by positive risk sentiment in thin markets

December 27, 2022 04:50
Dollar lacks upside momentum due to lower Treasury yields

Dollar tries to shrug off the pressure

December 26, 2022 05:13
Investors spooked by strong US data

Investors spooked by strong US data

December 23, 2022 11:55
Dollar lacks upside momentum due to lower Treasury yields

Dollar back under pressure after short-lived relief

December 22, 2022 05:17
Risk demand reemerges cautiously, but caution remains in place

Risk demand reemerges cautiously, but caution remains in place

December 21, 2022 08:49
Dollar lacks upside momentum due to lower Treasury yields

US dollar resists selling pressure

December 20, 2022 10:44
Market sentiment dented by recession fears

Market sentiment dented by recession fears

December 19, 2022 02:53
Dollar lacks upside momentum due to lower Treasury yields

Greenback stays on the defensive nearly across the board

November 16, 2022 05:34
Investor sentiment improves, but gains limited

Investor sentiment improves, but gains limited

November 15, 2022 05:46
Dollar lacks upside momentum due to lower Treasury yields

Dollar licks wounds after plunge

November 14, 2022 05:05
  • Terms & Сonditions
  • Contact
Tuesday, February 7, 2023
FWNews - pulse of the forex market
  • FUNDAMENTALS
    Equities struggle amid economic and China-related concerns

    Equities struggle amid economic and China-related concerns

    Stocks gain, dollar eases ahead of job market data

    Dollar pressured by positive risk sentiment in thin markets

    Investors spooked by strong US data

    Investors spooked by strong US data

    Risk demand reemerges cautiously, but caution remains in place

    Risk demand reemerges cautiously, but caution remains in place

    Market sentiment dented by recession fears

    Market sentiment dented by recession fears

    Investor sentiment improves, but gains limited

    Investor sentiment improves, but gains limited

    Risk sentiment keeps deteriorating, dollar climbs

    Stocks celebrate US inflation, dollar slumps

    Virus, US-China tensions hit global markets

    Market sentiment turns cautious amid events in the US

    Investors look indecisive ahead of another volatile week

    Investors look indecisive ahead of another volatile week

  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage
No Result
View All Result
FWNews - pulse of the forex market
  • FUNDAMENTALS
    Equities struggle amid economic and China-related concerns

    Equities struggle amid economic and China-related concerns

    Stocks gain, dollar eases ahead of job market data

    Dollar pressured by positive risk sentiment in thin markets

    Investors spooked by strong US data

    Investors spooked by strong US data

    Risk demand reemerges cautiously, but caution remains in place

    Risk demand reemerges cautiously, but caution remains in place

    Market sentiment dented by recession fears

    Market sentiment dented by recession fears

    Investor sentiment improves, but gains limited

    Investor sentiment improves, but gains limited

    Risk sentiment keeps deteriorating, dollar climbs

    Stocks celebrate US inflation, dollar slumps

    Virus, US-China tensions hit global markets

    Market sentiment turns cautious amid events in the US

    Investors look indecisive ahead of another volatile week

    Investors look indecisive ahead of another volatile week

  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage
No Result
View All Result
FWNews - pulse of the forex market
No Result
View All Result

Home » Dollar, yen on the defensive amid risk-on tone

Dollar, yen on the defensive amid risk-on tone

by Joseph Deen
December 29, 2020 05:39
in Technical analysis
0
A slow start to the week in FX markets

The common currency could see a pullback before another bull run takes place

EURUSD

EURUSD climbed to the 1.2257 figure for the first time since December 18 on Tuesday, extending the ascent amid a weaker safe-haven dollar. As the pair stays firmly above the ascending 20-DMA while retaining a bullish bias, the euro could extend the ascent to fresh long-term highs above 1.2270. However, the common currency could see a pullback before another bull run takes place. In this scenario, the prices may retreat to the mentioned moving average (today at 1.2160) first. It is also possible that profit-taking will take the pair below this MA, which implies a more aggressive bearish correction. In the short-term, however, the euro will likely retain its bullish bias. 

GBPUSD

GBPUSD bounced from the 20-DMA that now acts as the key immediate support and turned marginally positive on the day after steep losses seen on Monday. The pair climbed to the 1.3520 area earlier in the day but failed to preserve the upside momentum and trimmed intraday gains in recent trading. Having settled below the 1.3500 level that now represents the nearest target for bulls. A daily close above this figure would be a confirmation of the latest recovery. Otherwise, a more pronounced retreat could be expected. On the four-hour charts, the pound has dipped below the 20-SMA recently, suggesting short-term downside risks may be increasing.

USDJPY

USDJPY made another failed attempt to break above the important 20-DMA that has been acting as resistance since mid-November. As such, following a two-day winning streak, the pair turned marginally lower on Tuesday after another rejection from the mentioned moving average, today at 103.80. In the short term, the dollar needs to make a decisive break above the 104.00 barrier so that the technical picture to improve somehow. On the downside, immediate support is located at 103.60. A break below this level would pave the way towards 103.25, followed by March lows below 103.00.

EURJPY

The cross jumped to fresh March highs above 127.00 on Tuesday amid the lack of demand for the safe-haven Japanese yen. The pair has been rising for the fourth day in a row already, deriving support from the ascending 20-DMA, today at 126.27. As of writing, the euro was changing hands just at the 127.00 handle, a decisive break above which would pave the way towards fresh multi-month highs. However, this barrier could attract some profit-taking in thin pre-holiday trading in the short term. In this scenario, EURJPY may get back below the mentioned 126.60 intermediate support and even threaten the 126.00 mark.

USDCHF

USDCHF extends the pullback from local highs seen above 0.8900 at the start of the week. The pair’s decline has accelerated following a break below the descending 20-DMA, today at 0.8885. The dollar slipped back to the 0.8850 area, with the daily RSI pointing south, which implies that further losses could lie ahead in the short term. Adding to the downbeat technical picture, USDCHF has dipped below the key moving averages in the short-term charts in recent trading. If the selling pressure persists in the immediate term, the greenback could slip back to May 2015 lows seen around 0.8820 earlier this month. In case of a recovery, the immediate resistance is represented by the mentioned moving average.

Tags: EURJPYEURUSDGBPUSDUSDCHFUSDJPY
Share3Tweet2
ADVERTISEMENT
Joseph Deen

Joseph Deen

Joseph is a technical analysis expert. A graduate of NYU, Joseph has a master's degree in mathematics. On FWNews, Joseph provides exchange rates reviews and forecasts.

Related Posts

Equities struggle amid economic and China-related concerns
Fundamental analysis

Equities struggle amid economic and China-related concerns

December 29, 2022 08:55
16
Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

Currencies stuck in ranges as New Year holiday looms

December 28, 2022 07:01
12
Stocks gain, dollar eases ahead of job market data
Fundamental analysis

Dollar pressured by positive risk sentiment in thin markets

December 27, 2022 04:50
12
Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

Dollar tries to shrug off the pressure

December 26, 2022 05:13
12
Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

Dollar back under pressure after short-lived relief

December 22, 2022 05:17
16
Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

US dollar resists selling pressure

December 20, 2022 10:44
14

Leave Your Opinion Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Swedish flags fly from a tourist souvenir shop in Gamla Stan in Stockholm, Sweden

Change of plan? Here’s what Sweden will do if there’s a ‘second wave’ of the coronavirus

June 18, 2020 06:04
17
Merkel Warns of Long Road Ahead in Worsening Virus Crisis

Merkel Warns of Long Road Ahead in Worsening Virus Crisis

August 28, 2020 11:24
11

Federal Reserve Board issues enforcement action with Putnam County Bank and announces termination of enforcement action with Barclays Bank PLC

July 2, 2020 02:03
10

Ads

Shneider Electric

Most Popular

A slow start to the week in FX markets
Technical analysis

Dollar regains ground to start the week

January 25, 2021 07:25
118
A slow start to the week in FX markets
Technical analysis

Greenback advances modestly amid strong data

May 28, 2021 07:38
110
Kim Jong Un reportedly says his nuclear weapons guarantee there will be no more war
News

Kim Jong Un reportedly says his nuclear weapons guarantee there will be no more war

July 28, 2020 08:29
95
FWNews

Copyright © 2022 FWNews

  • Terms & Сonditions
  • Contact
No Result
View All Result
  • FUNDAMENTALS
  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage

Copyright © 2022 FWNews