The renewed risk aversion pushed the USD index back into positive territory
Earlier in the day, the USD index was trading under some pressure below the 97.00 figure as risk sentiment had improved in the global financial markets. However, the tone has deteriorated again after Russia said it will continue operations in Ukraine until it achieves its goal. The renewed risk aversion pushed the USD index back into positive territory in recent trading. The index was last seen trading around the 97.00 figure. In a wider picture, the escalating geopolitical tensions will continue to support the greenback due to its safe-haven status. As such, EURUSD failed to hold above the 1.1200 level to notch intraday lows around 1.1166 before rebounding marginally. It looks like the common currency could stay under pressure in the short term, with the immediate significant support arriving at 1.1120, followed by the 1.1100 figure. However, the pair will likely stay above this level for the time being.
Similarly, GBPUSD turned red on the daily charts as risk aversion reemerged. Earlier in the day, the pair peaked just below the 1.3440 zone that has been capping gains for the cable these days. The prices have settled just below the 1.3400 figure in recent trading, but it looks like the downside pressure would be limited from here. On the four-hour charts, the prices were last seen flirting with the descending 20-SMA while the RSI has turned slightly bearish, suggesting the pound could struggle to regain 1.3400 in the immediate term. In a wider picture, the pair keeps struggling with the 100-week SMA, with downside risks persisting as long as the pair stays below the 1.3600 figure, followed by the 1.3650 zone where last month’s peaks arrive.
USDJPY failed to hold above 115.00 earlier in the day to notch intraday lows around 114.75 before trimming losses slightly in recent trading. However, it looks like the pair would lack the momentum to regain the 115.00 figure on a daily closing basis as the safe-haven yen demand persists, capping recovery attempts in the greenback. On the hourly timeframes, the RSI has bounced from the oversold conditions but is yet to show a more decisive reversal to suggest the prices could reclaim the mentioned psychological level as support for the first time since late last week. In a wider picture, however, the US dollar stays elevated, trading marginally below multi-year highs seen above 116.00 earlier this year. On the downside, the immediate support is now expected at 114.70, followed by the ascending 100-DMA, currently at 114.40.
USDRUB railed to fresh all-time highs above the 109.00 figure on Monday before correcting lower to the 100.00 level on a daily closing basis. The pair briefly extended the retreat to the 92.65 zone earlier in the day before resuming the ascent amid rising geopolitical tensions. The dollar is now back above 100.00 and was last seen changing hands around 104.00, retaining a strong bullish bias. Despite the overbought conditions, the USD will likely stay on the offensive in the near term, with bearish risks surrounding the ruble and Russian assets in general remain elevated against the backdrop of developments surrounding Ukraine. Should the upside pressure intensify anytime soon, the USDRUB pair may regain the 106.00 immediate upside target, followed by the mentioned tops.