It looks like the downside pressure surrounding the common currency will continue to persist both in the near- and medium-term
The USD index advanced to fresh mid-2020 highs in the 97.40 area on Friday, thus pushing its counterparts further into the negative territory during the European hours. The persisting safe-haven demand coupled with the Fed’s hawkishness keep the greenback elevated these days. Against this backdrop, EURUSD extended losses to the 1.1120 area, threatening the 1.1100 figure that could be derailed later today should risk aversion reemerge during the North-American session. As of writing, the euro was changing hands around 1.1135, slightly off the mentioned lows. It looks like the downside pressure surrounding the common currency will continue to persist both in the near- and medium-term, as the greenback derives support from strong economic data and the Fed’s hawkish stance.
The cable refreshed January lows around 1.3357 on Thursday, extending losses amid the dollar’s strength. Today, the pair looks directionless while also clinging to the lower end of the extended trading range, with recovery attempts looking too modest to bet on a solid bounce in the near term. On the four-hour charts, the pound has settled below the key moving averages while the RSI is pointing lower and is about to enter the oversold territory. Should the pressure persist in the short-term, GBPUSD can derail the 1.3350 region, followed by the 1.3330 zone and the 1.3300 figure. On the upside, the initial target now arrives at 1.3400. In a wider picture, the pair has been losing ground for the second week in a row, retreating steadily from late-October lows seen around 1.3750 earlier this month.
USDJPY keeps rallying, reversing the losses incurred during the two previous weeks. The decisive break above the 20-DMA added to positive momentum earlier this week, while the 115.00 figure has now turned into support. On Friday, the greenback extended the ascent to January 10 highs around 115.70. Thus is a critical short-term level as a break above this zone would pave the way towards the 116.00 figure and the multi-year highs around 116.35. However, it looks like the dollar would need an extra catalyst to overcome the 116.00 hurdle in the near term. On the downside, the immediate support arrives at 115.20, followed by the 20-DMA, currently at 114.85. On the hourly timeframes, the pair keeps trading above the ascending 20-SMA, adding to a bullish technical picture surrounding the dollar.
The bitcoin price keeps treading in a tight trading range, shrugging off the heightened volatility that dominates traditional financial markets these days. The BCUSD pair briefly peaked just below the $39,000 figure earlier in the week but failed to preserve the recovery momentum and retreated back to the lower end of the range. On Friday, the upside potential was capped by the $37,500 figure, with the coin holding above the $36,000 level, up 1.34% on the day. In the short term, bitcoin will likely continue to stay directionless within a limited trading range. On the upside, a decisive break above the $37,500 zone would pave the way towards the $40,000 key local resistance. However, it looks like the coin will struggle to regain this psychological level in the coming days, with bearish risks persisting for the time being.
The Kiwi has been losing ground for the seventh day in a row on Friday. The pair plunged to October 2020 lows around 0.6550 and was last seen clinging to the lower end of the extended trading range, suggesting further losses could lie ahead despite the oversold conditions. Should the mentioned lows give up in the near term, the pair will target the 0.6500 figure, followed by the 0.6440 zone. On the four-hour timeframes, the RSI keeps pointing south despite the oversold conditions, which implies that downside risks will continue to drive the prices lower at this stage. In case of a bounce, NZDUSD will hardly be able to exceed the 20-DMA, currently at 0.6740, at least in the coming days.