The dollar was mostly lower as risk sentiment turned positive following a sell-off witnessed on Monday
The euro saw a bullish week due to a weaker dollar as risk sentiment turned positive following a sell-off witnessed on Monday. EURUSD pair exceeded the 1.1300 figure to settle at weekly highs around 1.1340 in thin trading ahead of Christmas. In the process, the common currency exceeded the 20-DMA, currently at 1.1300. Now, this level represents the immediate support for the euro. As long as the prices stay above this zone, bearish risks are limited. On the four-hour charts, the technical picture has improved as well after the pair exceeded the key moving averages. Still, the directionless RSI signals the euro may lack the momentum to notch fresh local highs in the short term and will likely stay at the current levels instead. Should the mentioned hurdle give up, this month’s highs around 1.1360 will come into the market focus.
The cable advanced to one-month highs around 1.3440 on Thursday to notch the third bullish day in a row. Today, the pair has switched into consolidation mode to settle in the 1.3400 area, also struggling for direction in thin pre-holiday trading. GBPUSD is finishing the week with solid gains and could extend the ascent during the final week of the year should the greenback stay on the defensive. However, it looks like traders could proceed to some year-end profit-taking, so there is a risk that the pound may get back below the 20-DMA, currently at 1.3270, in the coming days if risk sentiment deteriorates. On the hourly timeframes, the prices were last seen flirting with the 20-SMA and could keep clinging to this moving average in the near term, lacking fresh drivers ahead of holidays.
USDJPY edged higher to fresh one-month highs around 114.50 on Friday and was last seen retaining a modest bullish bias on the intraday charts. Earlier in the week, the dollar has got back above the 20-DMA, with the technical picture improving further after the latest ascent took the prices above 114.00. as such, USDJPY is finishing the third bullish week in a row and could retarget multi-year highs notched last month around 115.50. However, the upside potential looks limited for the time being due to low trading activity. Furthermore, profit-taking could bring the prices back to the 114.00 region that now represents the immediate support. On the four-hour timeframes, the RSI is yet to enter the overbought territory, suggesting there is room for further gains in the near term.
The Bitcoin price managed to overcome the 20-DMA on Thursday and saw solid intraday gains. The BTCUSD pair exceeded the $50,000 psychological level, advancing to 2.5-week highs around $51,500 today. The largest cryptocurrency by market capitalization was last seen changing hands around the upper end of the intraday range, preserving a modest bullish bias. However, the coin is yet to confirm its recovery above the $50,000 figure on a daily closing basis. Otherwise, another local sell-off could be expected. In a wider picture, bitcoin is now back targeting the 20-week SMA, currently at $52,600. A decisive break above this moving average would mark a significant improvement in the technical picture at this stage. However, it looks like the digital currency may lack the upside momentum to challenge this barrier anytime soon.