USDJPY extended gains to early-2017 highs just below the 115.00 figure
The dollar remains elevated after another boost received from the US retail sales yesterday. The EURUSD pair dipped to fresh mid-2020 lows around 1.1265 earlier today before trimming losses in recent trading. The euro was last seen flirting with the 1.1300 figure, staying just slightly off long-term lows, with downside risks persisting in the short term despite the oversold conditions. Meanwhile, on the four-hour timeframes, the RSI stays in the oversold territory while pointing north, suggesting the common currency could turn positive on the day in the immediate term. However, the overall recovery potential remains limited as long as the prices stay below at least the 1.1450 intermediate resistance, followed by the 1.1500 figure and the descending 20-DMA, today at 1.1540.
According to the latest report, the UK consumer price index surged in October to 4.2% year-over-year, to register a 10-year high. In a knee-jerk reaction to the inflation report, the GBPUSD pair surged to one-week highs around 1.3475 before retreating partially in recent trading. Of note, the pound keeps gradually recovering from fresh 2021 lows despite the rallying dollar. The cable has settled above the 1.3400 figure these days, but downside risks persist as long as the prices stay below the descending 20-DMA that arrives just below the 1.3600 figure. On the other hand, rising expectations for a rate hike by the Bank of England could help the cable resists the pressure from dollar bulls in the coming days or weeks.
The pair has been advancing since the beginning of the week. On Wednesday, the dollar extended gains to early-2017 highs just below the 115.00 figure that now represents the immediate barrier for USD bulls. The daily RSI is yet to enter the overbought territory, suggesting there is room for further gains in the short term. However, it looks like USDJPY could need an extra catalyst to overcome the mentioned level on a daily closing basis. The 115.00 figure may trigger a local bearish correction amid the potential profit-taking in the immediate term within a broader uptrend that remains strong. On the hourly charts, the pair has been holding above the ascending 20-SMA since Monday, adding to an upbeat technical picture. On the downside, the immediate support now arrives at 114.70, followed by 114.40, and the 20-DMA, today at 113.85.
BTCUSD has been losing ground since the beginning of the week when the prices were rejected off the $66,300 area. On Wednesday, the largest cryptocurrency by market capitalization dipped to late-October lows around $58,500 and was last seen clinging to the lower end of the extended trading range. Should the mentioned region give up anytime soon, the $57,000 figure would come back into the market focus. On the upside, the $60,000 level represents the key barrier, with downside risks persisting as long as the prices stay below this psychological level. In a wider picture, the technical outlook has deteriorated since Monday as the coin keeps retreating from all-time highs seen last week around $69,000.
The Aussie failed to break above the 100-DMA earlier in the week and has been struggling to regain the upside bias since then. The pair extends the decline on Wednesday to register 1.5-month lows around 0.7260 earlier in the day while staying under pressure during the European hours. as a result, the 0.7300 figure has turned into the immediate resistance while on the downside, the market focus is now shifting towards the 0.7230 support zone, followed by the 0.7200 level last seen in early-October. On the shorter-term timeframes, the technical picture keeps deteriorating as well.