Should the BTCUSD pair stay afloat in the near term, the prices may regain the $40,000 psychological level and turn positive on weekly charts
The USD Index still lacks demand as risk sentiment has improved somewhat on Wednesday. The index stays below the 96.00 figure, struggling for direction ahead of the upcoming economic data, with Russia-Ukraine tensions staying in focus. As such, EURUSD retains bullish bias after yesterday’s brief dip below the 1.1300 figure while also struggling to regain the 1.1360 intermediate target on the way to 1.1400. The pair was last seen clinging to the upper end of the intraday range as risk trends have bounced, capping demand for the greenback. On the four-hour timeframes, the common currency is stuck between the key moving averages while the RSI looks directionless around the 53 figure, suggesting the immediate technical picture is neutral for the time being.
The cable briefly dipped to one-week lows around 1.3540 on Tuesday before bouncing partially on a daily closing basis. The pair derives support from the 20-DMA, extending the pullback today. The prices climbed to the 1.3620 region earlier in the day to settle around 1.3600 in recent trading. On the weekly timeframes, the pound is nearly unchanged, struggling for direction, with geopolitical tensions capping gains in the high-yielding British currency. Should the pair finish the day above the mentioned local highs, the technical picture would improve somehow, but it looks like GBPUSD will stay below the 1.3645 zone that has been capping gains this month. On the hourly charts, the pound is now back above the key moving averages, but the recovery momentum still looks limited.
Gold prices rallied to late-May highs around $1,913 on Tuesday before retreating amid profit-taking on Tuesday. The XAUUSD pair finished just below the $1,900 figure and has been retaining a bearish bias since the start of Wednesday trading hours. Still, the precious metal derives support from the $1,890 area, refraining from a deeper correction during the European session on Wednesday. As risk aversion intensified amid these developments, the bullion jumped to the mentioned peaks but failed to confirm a decisive break above $1,900 and came under renewed pressure instead as the Eastern countries imposed less harsh sanctions on Moscow than feared. Still, risk aversion could reemerge at any point and drive the safe-haven yellow metal back to recent multi-month highs. Should the price regain $1,900, it could target May’s peaks at $1,916, followed by 2021 highs around $1,960.
BTCUSD bounced from early-February lows seen around $36,300 to finish marginally below the $38,000 handle on Tuesday. Today, the largest digital currency by market capitalization regains bullish bias, flirting with the $39,000 figure as risk-on trends dominate traditional financial markets, pushing cryptocurrencies higher along with equities. Should the BTCUSD pair stay afloat in the near term, the prices may regain the $40,000 psychological level and turn positive on weekly charts. However, it looks like the coin could lack the upside momentum to overcome this barrier in the immediate term as traders stay cautious amid the geopolitical developments surrounding Ukraine. In a wider picture, the bullish potential remains limited as well, and BTC could see deeper losses before a steady and decisive reversal takes place.