The Kiwi keeps bleeding since late last week, threatening late-September lows now
The euro continues to oscillate around multi-month lows, struggling to stage a recovery as the dollar remains steady ahead of the FOMC meeting minutes due later today. EURUSD dipped to fresh mid-2020 lows around 1.1225 on Tuesday to settle in the 1.1240 area in early European deals. Bullish attempts were capped by the 1.1275 region, suggesting the path of least resistance for the common currency remains on the downside for the time being. As such, the euro now threatens the 1.1200 major support that, however, should trigger a bounce if comes into the picture in the near term. Now, there are some signs that the European currency is moving into a consolidation phase within a 1.1225-1.1275 range. EURUSD is expected to stay on the defensive as long as it doesn’t exceed the 1.1330 resistance zone, followed by the 1.1375-1.1385 region.
The cable has steadied around 1.3370 on Wednesday, trading unchanged on the day. The pair struggles to stage a recovery after a plunge to fresh 2021 lows around 1.3340 yesterday. The immediate upside target now arrives at 1.3400, followed by the 1.3440 intermediate resistance on the way towards the 1.3500 handle where the descending 20-DMA lies. Despite the consolidative moves seen during the European hours, it looks like the pound could see deeper losses in the short term before a reversal takes place. On the four-hour charts, the pair stays below the key moving averages while the RSI looks directionless just above the oversold levels, suggesting there is some room for further losses at this stage.
USDJPY climbed to fresh March 2017 highs around 115.25 earlier on Wednesday before correcting lower amid some profit-taking. Still, the pair was last seen changing hands just above the 115.00 figure and could confirm the latest breakout on a daily closing basis should the upcoming US economic data surprise on the upside. Also on the positive side, the daily RSI hasn’t entered overbought territory just yet despite the recent rally, suggesting the prices could see more gains in the coming days before a bearish correction takes place. On the weekly timeframes, however, there are some overbought signals already. Still, the RSI continues to point north. Anyway, a broader bullish trend remains intact as long as the pair stays above the 109.00 figure where the 200-week SMA arrives.
The bitcoin price encountered resistance just below the $58,000 handle once again and came under renewed selling pressure on Wednesday. Still, the largest cryptocurrency by market capitalization stays above the $55,000 figure. Should this support zone give up, the ascending 100-DMA, currently at $53,700, would come into the market focus for the first time since late September. On the upside, the immediate barrier now arrives at $58,000, followed by $59,800 and the 20-DMA, today at $61,500. In a wider picture, bitcoin has been losing ground for the second week in a row, retreating further from all-time highs seen at $69,000 earlier this month.
The Kiwi keeps bleeding since late last week. Early on Wednesday, the pair briefly derailed the 0.6900 figure for the first time since early October but managed to bounce marginally in recent trading. Still, the New Zealand dollar remains on the defensive even as the US dollar demand has eased somehow. In the short term, the prices need to regain the 0.6940 region in order to target the 0.6975 intermediate barrier on the way towards the 100-DMA, currently at 0.7020. However, it looks like NZDUSD would stay under pressure in the short term, with the RSI pointing south but hasn’t reached oversold territory just yet. If the pair dips back under the 0.6900 level, late-September lows around 0.6850 would come into the market focus.