On the weekly charts, the euro is about to register the third bullish week in a row
The dollar is regaining ground after yesterday’s sell-off. The USD index is attempting a rebound to the 93.40 area, leaving behind the recent weakness seen on the back of a not-so-dovish signal from the ECB. EURUSD rallied to the 1.1690 region after the central bank’s meeting, but failed to hold on to its gains and fell back to 1.1650 during the European hours on Friday. The technical picture on the daily charts looks mixed at this point, with the RSI pointing south while the prices are holding above the 20-DMA, today at 1.1600. As long as the common currency stays above this figure, bearish risks are limited. On the upside, the pair needs to make a decisive break above the 1.1700 hurdle to see a more robust ascent in the coming days. On the weekly charts, the euro is about to register the third bullish week in a row.
The cable retains a modest bullish bias on Friday, clinging to a slightly descending 100-DMA during the European hours. Following a rejection from this week’s highs around 1.3830, the pair struggles to regain the 1.3800 figure which represents the immediate barrier for bulls. Should this level give up anytime soon, the pound would retarget the aforementioned local highs. Otherwise, GBPUSD will get back below the 100-DMA and could challenge the ascending 20-DMA (today at 1.3700) last seen more than two weeks ago. However, such a scenario looks unlikely at this point, with downside risks limited. On the hourly charts, the technical picture looks neutral, with the RSI directionless around the 55 figure. On the other hand, the pair needs to overcome the 20-DMA on a daily closing basis in order to see more robust gains in the coming days.
USDJPY dipped to two-week lows around 113.25 on Thursday. In the process, the dollar managed to hold above the ascending 20-DMA which has been acting as a support zone for over a month already. As a result, the pair bounced back into the positive territory on Friday and was last changing hands around 113.75. Despite the greenback regained bullish bias, it looks like it would lack the upside impetus to stage a more robust recovery in the short term. USDJPY was last seen changing hands around 113.70, up 0.15% on the day. On the four-hour timeframes, the pair has been struggling below the 20-DMA since Wednesday, which implies that the greenback will hardly be able to regain the 114.00 handle in the near term.
The bitcoin price rebounded sharply on Thursday, rising back above the 20-DMA. However, the largest cryptocurrency by market capitalization failed to extend gains, lacking upside momentum. The BTCUSD pair has settled just below the $61,000 figure, struggling for direction on Friday. The digital currency struggles to get back to its all-time highs registered last week around the $67,000 figure. However, the bearish potential seems limited at this point, and the recent drop should not even be considered a market correction due to the volatile nature of cryptocurrencies. If the prices manage to hold above the aforementioned moving average, the bulls could retarget the $62,500 area, followed by the $63,700 barrier. On the downside, a break below $60,000 would pave the way towards $58,800 and then to yesterday’s lows seen marginally above the $59,000 figure.
USDCHF extends its bearish correction from local highs seen around 0.9225 earlier in the week. On Friday, the pair slipped to late-August lows in the 0.9100 area. Should this level withstand the pressure, a bounce could be expected in the short term. Otherwise, the greenback would suffer deeper losses, with the immediate bearish target arriving at 0.9075. Also on the negative side, USDCHF has settled below the key moving averages which represent local barriers on the way towards the early-April highs seen at 0.9370 one month ago. In the immediate term, the pair needs to regain the 0.9150 region so that to retarget the 20-DMA, today at 0.9186.