In a wider picture, the cable remains within a strong bearish trend, holding around fresh 1.5-lows these days
The dollar is losing some ground today, struggling to regain the bullish momentum as the Fed begins its two-day policy meeting. The greenback could derive support from the central bank’s decision to raise rates for the first time since 2018. The USD index was once again rejected from the 99.00 figure earlier in the day to settle around 98.65 in early European hours. Should the pressure persist in the short term, the buck may target the 98.50 next support zone. However, the bullish potential looks limited at this stage, and the buying pressure could reemerge after the Fed meeting outcome. EURUSD jumped to the 1.1020 area earlier in the day before correcting slightly lower. The pair was last seen clinging to the 1.1000 figure, adding 0.56% on the day. On the four-hour charts, the technical picture looks neutral at this stage, as the RSI is directionless while the prices are holding marginally above the 20-SMA.
GBPUSD extended losses to fresh November 2020 lows around 1.3000 earlier in the day before bouncing from the psychological level during the European hours as the safe-haven greenback keeps retreating across the market. The pair recovered to the 1.3050 zone that capped the bullish momentum in recent trading. On the hourly timeframes, the prices have settled slightly above the 20-SMA while the RSI looks directionless, painting a neutral short-term technical picture. At this stage, the pound needs to regain the 1.3200 level in order to see a more sustained bounce. As long as the prices stay below this figure, downside risks continue to persist. Should the 1.3000 level give up anytime soon, GBPUSD will target the 1.2950 next support zone, followed by 1.2850. In a wider picture, the cable remains within a strong bearish trend, holding around fresh 1.5-lows these days.
The Japanese yen keeps bleeding for the seventh session in a row on Tuesday, refreshing five-year lows. USDJPY jumped to the 118.45 area earlier in the day before retreating amid profit-taking that pushed the prices back below 118.00 ahead of the European trading session. From the technical point of view, the pair looks overbought at this stage. The daily RSI stays above the 70 figure despite today’s correction, hints at some continuation of the pullback in the near term. In a wider picture, the dollar stays within a strong bullish trend while also holding above the key moving averages. On the downside, the immediate support now arrives at 117.70, followed by the 117.30 zone. On the shorter-term timeframes, there are no obvious bearish signals just yet, suggesting the pair could resume the ascent after a local retreat.
BTCUSD briefly dipped to early-March lows around $37,500 before bouncing back to the flat-line in the $38,700 area on a daily closing basis on Monday. Today, the largest cryptocurrency by market capitalization keeps struggling for direction after a strong rejection from the levels just below the $40,000 psychological level earlier in the day. In a short-lived rally, the prices failed to regain the 20-DMA, suggesting the coin is probably not ready for a sustained recovery just yet. On the four-hour timeframes, the digital currency is now back below the 20-SMA while the RSI looks directionless in the neutral territory, which implies that the bitcoin price will likely refrain from a more decisive bounce in the short term. In a wider picture, the BTCUSD pair keeps struggling for direction below the $40,000 figure that represents the immediate critical target for the bitcoin bulls.