EURUSD slipped back into negative territory, extending the retreat from local highs around the 1.1400 figure
The dollar extended losses nearly across the market on Wednesday despite stronger-than-expected retail sales data and mixed risk trends. The USD index failed to regain the 96.00 figure and finished around intraday lows in the 95.70 area. On Thursday, however, risk sentiment has deteriorated to push the safe-haven dollar back into positive territory. Still, the index struggles to regain the 96.00 handle and was last seen trading around 95.87, 0.17% higher in the day. Against this backdrop, EURUSD slipped back into negative territory during the European trading hours, extending the retreat from local highs around the 1.1400 figure that capped gains yesterday. As long as the common currency stays below this level, downside risks continue to persist in the near term. Should the pair fail to hold above the 20-DMA on a daily closing basis, the technical outlook will deteriorate, and the 1.1300 level could turn back into resistance again.
USDJPY has been under pressure since Wednesday. The pair’s decline has accelerated today as yen demand reemerged. Of note, the dollar briefly derailed the 20-DMA for the first time in two weeks before trimming some intraday losses in recent trading. A decisive break below this moving average, currently at 115.00, would pave the way towards the 114.70 support zone, followed by the ascending 200-DMA that arrives at 114.15. On the four-hour timeframes, the technical picture is getting more bearish during the European hours, with the RSI approaching the overbought territory while the dollar trading below the key moving averages, suggesting USDJPY could see deeper losses if the 115.00 figure turns back into resistance in the near term. In a wider picture, however, the pair keeps holding slightly off multi-year highs registered around 116.35 in early January.
Gold prices have been retaining a mostly bullish tone this week. Extending yesterday’s bounce, the XAUUSD pair jumped to fresh mid-2021 highs around $1,893 earlier on Thursday before retreating marginally in recent trading. The bullion was last seen changing hands around the $1,887 figure, up nearly 1% on the day. Now that the yellow metal is approaching the $1,900 threshold, the short-term risk of profit-taking is rising at this point. Should the bullish momentum slow down anytime soon, the bullion may get back below $1,880 or even correct lower under the $1,870 zone. In a wider picture, however, it looks like the precious metal will extend the rally due to safe-haven demand amid rising geopolitical tensions. The XAUUSD pair looks set to finish the third consecutive week with solid gains. In the immediate term, the prices need to hold above the $1,877 intermediate support zone.
Bitcoin extended gains to one-week highs in the $44,700 area to finish around $44,000 on Wednesday. However, the coin failed to preserve the upside momentum and came under renewed selling pressure today. The BTCUSD pair retreated to the $43,300 support zone, a break below which would pave the way towards $43,000, followed by the mentioned lows, strengthened now by the ascending 20-DMA. The BTCUSD pair retreated to the $43,300 support zone, a break below which would pave the way towards $43,000, followed by the mentioned lows. As such, the short-term outlook for BTC stays relatively upbeat as long as the prices hold above this moving average. In a wider picture, however, the BTCUSD pair keeps recovering gradually from mid-2021 lows seen below the $33,000 figure last month. The prices have been trending north for the fourth week in a row already.