Markets in a sell-off mode after Washington said that it was possible that Russian invasion could take place in the coming days
The safe-haven dollar keeps climbing north amid widespread risk aversion after Washington said that it was possible that Russian invasion could take place in the coming days despite the Kremlin denying any intention to invade its neighbor. The USD index regained the 96.00 figure to extend gains to early-February highs around 96.30. As such, EURUSD retreated from last week’s peaks around 1.1500 and was last seen changing hands in the 1.1300 area. In the process, the pair derailed the 20-DMA. Should the 1.1300 level turn into resistance anytime soon, additional losses could lie ahead. The next support now arrives at 1.1270, followed by the 1.1230 region. The common currency was last seen changing hands around 1.1317, slightly off intraday lows but still 0.25% lower on the day.
The cable failed to hold above the 20-DMA amid the pressure from USD bulls that remain in control on Monday. As a result, the pair briefly derailed the 1.3500 figure for the first time in a week before bouncing slightly in recent trading. Of note, the 1.3500 level is now strengthened by the 100-DMA that could cap the pressure in the near term should the greenback refrains from another bullish wave. However, it looks like the pair will struggle to regain the upside impetus at this point and could see deeper losses on a daily close below the mentioned moving average. The next support now arrives at 1.3490, followed by the 1.3460 zone. On the four-hour timeframes, the technical picture keeps deteriorating, with the RSI pointing south in the neutral territory, suggesting the pound will at least stay on the defensive in the immediate term.
USDJPY was rejected from multi-year highs seen at 116.30 last week and has been retreating since then. The pair extended the bearish correction to the 115.00 figure that has been capping losses so far. Should this support withstand the selling pressure in the near term, the dollar may stage a local bounce and retarget the 115.60 zone first. On the positive side, downside risks are limited as long as the prices stay above the 20-DMA, currently at 114.80. In a wider picture, USDJPY remains bullish despite the recent sell-off, with the pair staying well above the ascending 20-week SMA that arrives at 114.10. Of note, this moving average capped losses last month, suggesting this strong support zone could help limit the pressure this time as well.
Gold prices rallied to three-month highs around $1,865 on Friday before retreating marginally. Today, the XAUUSD pair is holding just above the $1,850 zone, struggling to stage another ascent as the upside momentum has eased somehow. At the same time, the yellow metal stays afloat, refraining from a deeper correction, suggesting the bullion could see fresh buying pressure in the short term should risk aversion persist. On the hourly charts, the prices are holding well above the ascending 20-SMA while the RSI looks directionless just below the overbought territory, pointing to a mixed near-term technical outlook. As long as XAUUSD stays above $1,850, upside risks keep persisting at this point, while the key support is now represented by the ascending 20-SMA that arrives at $1,823.
The BTCUSD pair has been struggling to regain the upside momentum since its rejection from early-2022 highs seen last week just below the $46,000 figure. The coin retreated to one-week lows around $41,500 before regaining the $42,000 figure in recent trading. Still, the largest cryptocurrency by market capitalization stays on the defensive while holding below $45,000. On the other hand, the downside potential is limited as long as the prices hold above the ascending 20-DMA, currently at $40,300, followed by the $40,000 psychological level. On the four-hour charts, the recovery attempts are now being capped by the 20-SMA, while the overall technical picture looks neutral for the time being.