The euro is now flirting with the 20-week SMA but it looks like it will lack the impetus to overcome this barrier on a daily and weekly closing basis
The dollar continues to trade in a mixed manner, staying mostly under pressure despite the persisting geopolitical risks and hawkish signals from the fed officials. The USD index struggles to regain the 96.00 figure these days as sellers reemerge on local rallies. Against this backdrop, EURUSD has settled in a tightening range, now limited by the 100- and 20-DMAs. Of note, the euro lacks the momentum to get back above the 1.1400 level despite a relative weakness surrounding the greenback, suggesting the downside risks continue to persist in the near term. As of writing, the pair was changing hands around 1.1366, up less than 0.1% on the day. Of note, the euro is now flirting with the 20-week SMA but it looks like it will lack the impetus to overcome this immediate barrier on a daily and weekly closing basis.
The cable extended this week’s gains to the 1.3640 resistance that has been capping the upside momentum in February. The pair bounced from the 100-DMA at the start of the week and has been trending north since then. However, it looks like the pound would need an extra impetus to overcome the mentioned barrier, followed by a slightly descending 200-DMA, currently at 1.3685. On the four-hour timeframes, the technical picture looks neutral for the time being, while on the positive side, GBPUSD is now well above the key simple moving averages. It looks like the prices will stay below the 1.3650 region in the near term despite the dollar staying slightly negative these days. On the downside, the immediate support is now expected at 1.3600, followed by 1.3580 and the 20-DMA, currently at 1.3520.
The bitcoin price plunged dramatically on Thursday to get back below the 20-DMA for the first time since early February. The BTCUSD pair extended losses to the $40,000 figure that has been capping further losses so far. The coin has settled around $40,700 on Friday, struggling for direction after a sell-off. Should bitcoin manage to hold above the psychological support in the short term, a bounce back above the mentioned moving average could be expected. For the time being, there are no obvious signs of a deeper plunge in the market. On the hourly charts, the RSI looks neutral while the prices are about to challenge the flattening 20-SMA. A daily close above the $42,000 mark would somehow ease the downside pressure surrounding the digital currency.
Following the initial jump to the $1,880 zone earlier in the week, the bullion retreated but managed to regain the upside momentum eventually. As a result, the XAUUSD pair briefly exceeded the $1,900 figure for the first time since June before correcting slightly lower. In the immediate term, the precious metal could struggle to regain the upside momentum as risk sentiment keeps improving ahead of the North American trading. Also, investors may opt to take more profit at attractive levels ahead of the weekend. In this context, the market focus now shifts to the $1,880 region, followed by the $1,870 intermediate support. On the upside, gold buyers need to push the prices back above $1,900 where a strong supply zone arrives. Should the yellow metal overcome this barrier and confirm the breakout, the $1,916 peaks will come into the market focus.