On the weekly charts, the euro stays positive but could yet come under more heavy selling pressure
EURUSD failed to hold above the 1.1100 figure on Thursday to come back under pressure as dollar demand reemerged. The pair extended losses to 1.0965 earlier today before bouncing back to the flat-line in recent trading. On the weekly charts, the euro stays positive but could yet come under more heavy selling pressure should the greenback receive another boost as a safe-haven asset. The USD index is now back targeting the 99.00 figure, trading around 98.80, up 0.30% on the day. On the four-hour timeframes, the common currency is struggling to hold above the 20-SMA. A break below this moving average would mark further deterioration in the short-term technical picture. The immediate support now arrives at 1.0925, followed by the 1.0900 figure. On the upside, EURUSD needs to regain the 1.1100 level, but it looks like the path of least resistance remains to the downside at this stage.
GBPUSD is back under pressure after failed attempts to challenge the 1.3200 figure earlier this week. As a result, the pair dipped to fresh November 2020 lows around 1.3050 and was last seen clinging to the lower end of the extended trading range, suggesting deeper losses could lie ahead. If the mentioned support gives up anytime soon, the pound will target the 1.2900 level in the short term. Adding to a more downbeat technical picture, the pair is now trading below the key weekly SMAs while also finishing the third bearish week in a row. On the upside, the immediate target arrives at 1.3100, followed by 1.3180 and the 1.3200 figure. The daily RSI is now flirting with the 30 figure, retaining a bearish bias, suggesting further losses could lie ahead in the near term.
USDJPY extended the rally on Friday due to a weaker yen. The pair derailed the 117.00 handle for the first time since January 2017 and was last seen clinging to this level during the European hours. The greenback has been rising for the fifth session in a row, finishing the week on a strongly bullish note. USDJPY regained the 20-DMA at the start of the week and has been accelerating the ascent since then. Should the USD confirm a break above 117.00 on a daily and weekly closing basis, the pair may target the 118.60 key zone. On the downside, the immediate support now arrives at 116.35, followed by 116.00. As long as the prices stay above this level, short-term upside risks persist. In a wider picture, the dollar remains well supported by the ascending 20-week SMA, currently at 114.45.
The BTCUSD pair has been under pressure since Thursday as the bearish momentum reemerged after peaking at $42,500 earlier in the week. In the process, the largest cryptocurrency by market capitalization retreated back below both the $40,000 figure and the 20-DMA. Earlier today, the coin derived support around $38,200 before bouncing partially. Still, the pair struggles to regain $39,000, suggesting the recovery potential would be limited in the near term. As such, this month’s lows in the $37,100 area are now back in the market focus as digital currencies struggle along with traditional financial markets amid the ongoing geopolitical tensions surrounding Ukraine. On the weekly timeframes, however, the technical picture looks neutral, with the prices holding just below the Monday’s opening levels. Should bitcoin refrain from another sell-off during the weekend, the short-term technical outlook will remain unchanged.