Downside risks surrounding the euro persist as long as the prices stay below the 20-DMA, currently at 1.1330
As risk mood stays unstable, the safe-haven dollar looks bid despite the recent correction from fresh mid-2020 highs seen on Thursday. According to the latest developments surrounding Ukraine, Russia has closed its airspace to all airplanes registered in the UK in retaliation to Aeroflot sanctions from Britain. After peaking at 97.75, the USD index retreated but managed to hold above the 97.00 figure, retaining a bullish bias on Friday. As risk sentiment is deteriorating again, dollar demand will likely persist ahead of the weekend. Against this backdrop, EURUSD briefly dipped to mid-2020 lows around 1.1100 before bouncing partially. On Friday, the common currency is back under pressure after failed attempts to regain the 1.1200 immediate barrier earlier in the day. At this point, downside risks persist as long as the prices stay below the 20-DMA, currently at 1.1330.
The cable dipped to 2022 lows around 1.3270 on Thursday. Today, the pair is holding below the 1.3400 figure, struggling to stage a more robust recovery as traders prefer to bet on a stronger dollar due to its safe-haven status. The GBPUSD pair was last seen trading around 1.3380, up less than 0.1% on the day. On the downside, the immediate support now arrives at 1.3340, followed by the 1.3300 figure. Should the prices manage to hold above the latter in the near term, another attempt to regain the 1.3400 level could be expected. In a wider picture, the pound is now flirting with a slightly ascending 100-week SMA. Should the pair fail to hold above this moving average on a daily closing basis, the technical picture will deteriorate further. On the upside, the nearest significant barrier arrives at 1.3500 where the 100-DMA lies.
The safe-haven gold rallied to September 2020 highs around $1,975 on Thursday before steadying marginally above $1,900 today. The bullion was last seen changing hands around $1,908, off intraday highs seen at $1,921 earlier in the day. Despite the bullish momentum waning, the precious metal could yet attract renewed demand as market sentiment remains unstable, and risk aversion could reemerge at any point. On the four-hour timeframes, the prices keep flirting with the 20-SMA while the RSI looks directionless around the 50 figure, suggesting the immediate technical picture is neutral. Now, the XAUUSD pair needs to hold above $1,900 in order to avoid a deeper correction amid profit-taking following a strong but short-lived rally. In a wider picture, the bullion looks set to finish the fourth bullish week in a row.
The bitcoin price briefly dipped to one-month lows around $34,300 on Thursday along with traditional financial markets. As risk aversion abated, the digital currency bounced to finish above the $38,000 figure. Today, the coin retains a modest bullish bias but lacks recovery momentum to get back above the $40,000 mark. Still, it looks like fresh attempts to overcome this will likely bring fresh selling pressure in the coming days. On the downside, the immediate support now arrives at $37,500, followed by $36,000 and yesterday’s lows. The key barrier for sellers stays around the $30,000 figure that could be targeted for the first time since July if the ascending 100-week SMA, currently at $33,000, gives up anytime soon. As of writing, the most popular cryptocurrency was changing hands around $38,600, just above the flat-line.