The cable could threaten fresh 2021 lows as dollar strength persists
EURUSD bounced back to the 1.1300 figure that continues to cap the upside, however. The euro has been staying below the descending 20-DMA since mid-October, oscillating just above long-term lows seen below 1.1200 last month. On Wednesday, the EURUSD pair turned positive but still lacks the recovery momentum to regain the 1.1300 figure. On the upside, EURUSD needs to make a decisive break above the mentioned moving average, currently at 1.1307, in order to stage a more robust and sustained recovery in the short term. Then, the 1.1370-1.1380 region would come back into the market focus. However, it looks like the bearish pressure surrounding the euro would reemerge after a short-lived bounce that may attract sellers above 1.1300.
The cable looks directionless today, still staying under pressure around 2021 lows seen just below the 1.3200 figure. On Tuesday, recovery attempts were capped around 1.3300, suggesting the upside potential would stay limited as long as the prices keep trading below the descending 20-DMA, currently at 1.3350. This moving average has been acting as resistance since late October and could cap the pound further amid the persistent strength in the US dollar. Furthermore, it looks like GBPUSD could see fresh long-term lows under 1.3200 before a reversal takes place. On the hourly charts, the pair struggles to regain the 20-SMA while the RSI is pointing slightly lower, suggesting the prices would stay on the defensive in the immediate term as well.
USDJPY has been treading water in the higher end of the recent range since Tuesday. The dollar struggles for direction around 113.50, with the initial resistance coming at 113.80, followed by the 20-DMA that arrives just below the 114.00 figure. As long as the pair stays below this barrier, the upside potential remains limited in the short term. On the downside, the greenback needs to hold above 113.00 in order to avoid another sell-off and continue recovery attempts. In a wider picture, USDJPY has nearly erased last week’s losses but is yet to regain the 114.30 region in order to retarget multi-year highs registered around 115.50 last month.
BTCUSD turned slightly negative on Wednesday after a three-day recovery. The largest cryptocurrency by market capitalization has been oscillating around the $50,000 psychological level for the second day in a row, struggling for direction after a plunge seen late last week. During the sell-off, the coin dipped to late-September lows around $41,000 but managed to bounce quickly. On the four-hour charts, the digital currency is about to get back below the 20-SMA as the RSI is pointing lower. At this stage, only a decisive break above the $50,000 level on a daily closing basis could attract a more robust buying pressure and send the prices beyond the $52,000 figure eventually. In a wider picture, BTC turned slightly positive following two weeks of solid losses.
USDCHF encountered local resistance around 0.9275 on Tuesday and has been on the defensive since then. Today, the pair has settled around 0.9240 as the 20-DMA managed to withstand the recent pressure from USD bulls. Still, after a rally witnessed on Monday, the technical picture has improved and looks neutral for the time being. On the shorter-term timeframes, technical signals look mixed for the time being, suggesting the dollar could stay in a consolidative mode for some time before deciding on the further direction. Anyway, the recent bounce from local lows implies that downside risks remain limited at least in the near term.