Despite the current retreat, the dollar remains within a broader uptrend, suggesting gains in the EURUSD pair could be limited
EURUSD
The dollar index remains on the defensive near 93.80 today. The greenback failed to derive support from strong economic data as risk-on sentiment helped ease the safe-haven demand for the US currency. Against this backdrop, EURUSD has been retaining bullish bias for the third session in a row on Friday. However, the common currency lacks the upside momentum to challenge the descending 20-DMA, today at 1.1625. This moving average has been acting as resistance for a month already, and the pair may need an extra catalyst to overcome this barrier and extend the recovery from mid-2020 lows seen around 1.1525 earlier in the week. Despite the current retreat, the dollar remains within a broader uptrend, suggesting gains in the EURUSD pair could be limited. Now, the market focus shifts to the release of US retail sales for the month of September. If the figures exceed expectations, the dollar could trim some losses later in the day.
GBPUSD
The cable has been rising for the third consecutive day on Friday. Earlier in the week, the pair climbed back above the 20-DMA, to settle above the 1.3700 figure during the European hours. The immediate resistance now arrives around 1.3740, followed by the 1.3765 region and the 1.3800 figure last seen in mid-September. This barrier is strengthened by a slightly descending 100-DMA, suggesting the pound could need to see a deeper downside correction surrounding the greenback to overcome 1.3800. On the shorter-term timeframes, the RSI is nearing the overbought conditions, which implies that the bullish potential could be limited from here. Should GBPUSD proceed to a downside correction, the nearest support zone is expected at 1.3700. followed by the 1.3670 area.
USDJPY
Despite the overall weakness surrounding the greenback, USDJPY continues the ascent as positive risk sentiment keeps the Japanese yen under pressure. Following a decisive break above the 114.00 handle, the pair advanced to fresh October 2018 highs around 114.40 and was last seen clinging to the upper end of the trading range, suggesting further gains could be ahead despite the overbought conditions. Should the bullish momentum persist in the near term, USDJPY may challenge the 114.55 region. Above this level, the pair would register November 2017 tops. On the four-hour timeframes, the technical picture remains bullish as well.
BTCUSD
The prices extended gains on Thursday but failed to overcome the $58,500 intermediate barrier to trim intraday gains eventually. However, the largest cryptocurrency by market capitalization regained upside impetus on Friday to hit the $60,000 psychological figure for the first time since April. The digital currency retreated in recent trading to settle marginally above the $59,000 level as of writing. Now, bitcoin needs to make a decisive break above the $60,000 figure on a daily closing basis in order to target record highs seen around $65,000 in April. Otherwise, a bearish correction could take place in the market. In this scenario, the immediate support should be expected at $58,500, followed by the $57,400 region. On the upside, should the $60,000 barrier give up, the prices would target the $61,000-$61,500 region.
NZDUSD
The Kiwi extends the ascent on Friday. Earlier in the week, the pair broke above the 20- and 100-DMAs and was last seen targeting the 200-DMA, today around 0.7100. A decisive break above this barrier would add to a more positive technical picture surrounding the New Zealand dollar. The daily RSI is pointing north, suggesting there is room for further gains in the short term. Furthermore, upside risks persist as long as the prices stay above the 0.7000 psychological mark. On the downside, the immediate support is expected at 0.7020 where a slightly descending 100-DMA arrives. In a wider picture, the pair looks set to finish higher following five consecutive weeks of losses.
