The upside potential surrounding the common currency remains limited
The dollar remains under some selling pressure on Friday despite the prevailing risk-off tone in the global financial markets. EURUSD came off December highs around 1.1360 but retained a bullish bias later on Thursday. Today, the pair is holding above both the 1.1300 figure and the 20-DMA but struggles to extend recent gains. The upside potential surrounding the common currency remains limited, with the greenback staying within a broader bullish trend. On the hourly charts, EURUSD was last seen flirting with the 20-SMA while the RSI was pointing lower, suggesting the pair could enter the negative territory on a daily closing basis. On the upside, the key immediate resistance arrives in the 1.1350-1.1360 region while the nearest support is expected at 1.1300, followed by the 1.1285 area where the mentioned 20-DMA lies.
The cable briefly jumped to December highs at 1.3375 on Thursday but gave up some gains eventually. Today, the pair turned negative after three days of gains as the dollar attempts to recover ahead of the weekend. The pound slipped below the 1.3300 figure and was last seen flirting with the descending 20-DMA, currently at 1.3290. If this moving average gives up anytime soon, GBPUSD would retarget the 1.3250 region, followed by the 1.3220 intermediate support. On the four-hour timeframes, the technical picture has also deteriorated, with the prices nearing the key SMAs while the RSI has reversed north in the neutral territory. Still, the bearish potential looks limited for the time being, at least as long as the cable stays above the 20-DMA.
USDJPY failed to overcome the 114.25 local resistance earlier in the week and came back under pressure on Thursday, extending losses today. The pair slipped below the 114.00 figure to register intraday lows around 113.45. The dollar was last seen changing hands around the lower end of the range. In the process, the 20-DMA has turned back into resistance, adding to a more downbeat technical picture in the short term. However, the bearish potential looks limited at this stage as the daily RSI looks neutral. USDJPY could slip towards the 113.20 area that will likely trigger a bounce higher eventually. In this scenario, the greenback could regain the 114.00 figure and retarget the mentioned highs. In a wider picture, the prices need to get back above 114.80 in order to focus on multi-year highs seen around 115.50 last month.
At the start of the week, the BTCUSD pair plunged from the $50,000 psychological level to notch local lows around $45,600. The largest cryptocurrency by market capitalization attempted to recover but the gains were capped by the $49,500 area. Since then, the coin has been on the defensive, struggling to hold around the 200-DMA, currently just below the $47,000 figure. It looks like the path of least resistance remains to the downside for the time being, with bearish risks persisting as long as the digital currency stays below the descending 20-DMA that arrives at $51,100 today. In a wider picture, BTC continues to trend lower since its rejection from all-time highs registered last month around $69,000. The immediate support now arrives at $46,000. Followed by the $45,600 mentioned low. On the upside, BTCUSD needs to make a decisive break above the $48,000 level in order to retarget the $50,000 barrier, followed by the $52,000 hurdle last seen ten days ago.