The common currency still looks vulnerable to fresh losses and could erase gains later in the day
Following the initial gains, the USD index turned negative on Friday as traders proceeded to profit-taking ahead of the US jobs report due later today. As such, the euro regained the upside momentum to erase yesterday’s losses. EURUSD has settled above both the 1.1300 figure and the 20-DMA during the European hours but is yet to confirm recovery on a daily closing basis as the common currency still looks vulnerable to fresh losses. Furthermore, the greenback could receive a boost later in the day if the upcoming data exceeds expectations. On the four-hour charts, the pair is now back above the key SMAs. However, the ascent looks too indecisive to bet on further gains in the immediate term despite the dollar’s local weakness.
The cable turned marginally positive on Friday but still struggles to overcome the 100-DMA, currently at 1.3553. The pair peaked at 1.3600 but failed to preserve the upside momentum and corrected lower eventually, suggesting the bullish potential remains limited, with the pound changing hands just below two-month highs. On the downside, the nearest support is now represented by the 1.3520 region, followed by the 1.3475 area, while this week’s lows arrive at 1.3430. On the weekly timeframes, the technical picture remains upbeat, but GBPUSD still struggles to regain the 20-week SMA that has been capping gains since mid-2021. In the near term, the pair will likely stay below the 100-DMA and could finish the day lower if dollar demand reemerges anytime soon.
USDJPY keeps retreating gradually from five-year highs seen earlier in the week around 116.35. On Friday, the dollar extended the downside correction to 115.75 before trimming losses to the 115.80 area in recent trading. Should the overall dollar demand pick up again anytime soon, the pair would try to regain the 116.00 level, but it looks like the greenback would fail to confirm a decisive recovery above this hurdle on a daily closing basis. On the hourly timeframes, the technical picture looks neutral, with the pair being stuck between the key moving averages while the RSI is pointing slightly higher in the neutral territory. Should the downside pressure intensify anytime soon, USDJPY would retarget the 115.30 support zone, followed by the 115.00 figure.
The bitcoin price keeps bleeding, with the downside pressure intensifying these days after failed attempts to overcome the 20- and 200-DMAs. The BTCUSD pair extended losses to three-month lows around $40,900 on Friday before trimming intraday losses to the $42,500 area in recent trading. Of note, the RSI has entered the oversold territory, suggesting the downside pressure could be limited from here. Should the digital currency proceed to recovery anytime soon, the prices would challenge the $43,800 zone after a rise above $43,000. In a wider picture, the prices keep retreating from the 20-week SMA that capped gains last month. Should the pressure intensify, the coin may derail the $40,000 figure for the first time since September.
The Aussie failed to hold above the 20-DMA and came under renewed selling pressure, staying on the defensive on Friday. AUDUSD extended the decline to 2.5-week lows around 0.7140 before trimming some intraday losses during the European hours as the USD index has weakened somehow. Still, the downside pressure continues to persist, with the key resistance arriving at 0.7285 where the 100-DMA lies. As long as the prices stay below this moving average, the upside potential looks limited. On the four-hour timeframes, the technical picture keeps deteriorating as the pair is now trading below the 200-SMA, currently at 0.7170, while the RSI is pointing lower but is yet to enter the negative territory, suggesting the Aussie could see deeper losses before a reversal takes place.