The euro may challenge the 1.1530 region and thus refresh mid-2020 lows ahead of the weekend
The dollar looks steady after a strong rally witnessed on Thursday nearly across the market. The USD index keeps a tad below recent peaks near 94.50 during the European hours. EURUSD plunged to the 1.1530 area to settle at 1.1540 on Friday ahead of the release of US Nonfarm Payrolls. The selling pressure surrounding the common currency could intensify if the dollar stages another ascent during the North-American session. In this scenario, the pair may challenge the mentioned lows and thus refresh mid-2020 lows ahead of the weekend. As such, the market focus is shifting back towards the 1.1500 figure after failed attempts to settle above the 20-DMA this week. On the hourly charts, the technical picture looks bearish as well.
The plunged to 1.3470 yesterday as the dollar advanced strongly against major rivals. On Friday, the pair extended losses to early-October lows in the 1.3435 zone during the European hours. Should the downside pressure persist in the short term, GBPUSD could threaten the 1.3410 area that triggered a solid bounce higher in late September. As such, this zone could provide support this time as well. If so, the pound may see a correction higher, but in the immediate term, it looks like the pair would stay on the defensive as risk aversion adds to a more upbeat tone surrounding the greenback. On the weekly charts, the cable is finishing with decent losses while the RSI continues to point south, which implies that the pair could need a significant bullish driver to stage a reversal next week.
USDJPY was rejected from the 114.45 region at the beginning of the week and has been struggling for direction since then. The pair failed to regain the 114.00 figure recently and has settled around 113.80 (20-DMA) during the European hours. Of note, important support arrives in the 113.50-113.40 region. As long as the greenback stays above this zone, downside risks are limited. A daily close above 114.00 would mark some improvement in the short-term technical picture. However, as the daily RSI looks flat at this point, it looks like the pair could lack the upside impetus to regain this barrier along with the mentioned SMA, at least for the time being. At the same time, a bullish scenario will take place if the dollar rallies after US jobs data.
The bitcoin price has been oscillating around the 20-DMA since last week, struggling for direction amid a lack of impetus. The largest cryptocurrency by market capitalization has been in consolidation mode since its rejection from all-time highs seen at $67,000 on October 20. On the downside, the $59,000 figure acts as the key short-term support zone, with prices mostly holding above the $60,000 psychological figure these days. Following two days of losses, the BTCUSD pair has settled in positive territory on Friday but is yet to confirm the latest local recovery on a daily closing basis as the selling pressure could reemerge beyond the $63,000 mark. This level represents the immediate bullish target at this point. On the weekly timeframes, the digital currency needs to hold above $61,600 in order to finish in the green.
USDCAD bounced from the 20-DMA on Thursday and retains a bullish bias today. The pair extended gains to fresh mid-October highs around 1.2470 to settle just below the 200-DMA that now represents the immediate barrier for dollar bulls. It looks like the prices could challenge this hurdle if the upcoming US jobs report comes in line with expectations or surprises on the upside later in the day. On the downside, the nearest significant support arrives at 1.2490 where the 20-DMA lies. On the four-hour timeframes, the RSI is approaching the overbought territory, suggesting the bullish potential could be limited in the short term. In a wider picture, the technical outlook seems neutral despite the pair remains below the 20-week SMA, today at 1.2525.
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