The euro needs to overcome the 1.1000 figure on a daily closing basis in order to retarget the descending 20-DMA, currently at 1.1060
The dollar stays under some selling pressure versus most counterparts ahead of the outcome of the Federal Reserve meeting due later today. EURUSD keeps recovering from the 1.0900 support that capped the sell-off at the start of the week. Still, the euro struggles to regain the 1.1000 figure, lacking the upside momentum despite dollar weakness. Should the Fed’s tone come in less hawkish than expected, the pair may see a more robust ascent in a knee-jerk reaction to the event. However, the overall bearish trend remains intact as long as the prices stay below the 200-week SMA that arrives marginally below the 1.1500. On the hourly charts, the technical picture has improved as the pair is now back above the key moving averages while the RSI reversed north in the neutral territory. In the near term, the common currency needs to overcome the 1.1000 figure on a daily closing basis in order to retarget the descending 20-DMA, currently at 1.1060.
GBPUSD bounced from the 1.3000 figure on Tuesday and has been retaining bullish tone since then. However, the upside momentum looks too modest at this stage to bet on more sustained recovery in the short term, with the pair holding below the 1.3100 level during the European hours on Wednesday. Furthermore, the cable stays well below the key moving averages while the daily RSI looks neutral just above the 30 figure. On the four-hour charts, GBPUSD is flirting with the 20-SMA, with the overall technical picture looking neutral at this stage. On the downside, the immediate support now arrives at 1.3045, followed by the 1.3000 critical level. Should this figure fail to withstand the pressure, the pound will target 1.2900 for the first time since November 2020. The nearest upside target arrives at 1.3090. A decisive break above 1.3100 on a daily closing basis would somehow improve the technical picture, but the overall trend will stay bearish as long as the prices hold below the 1.3700 figure last seen in September.
USDJPY peaked at early-2017 highs around 118.45 and was last seen holing around the upper end of the extended trading range. The daily RSI has entered the overbought territory, suggesting the upside impetus could be limited from here. Furthermore, bearish risks may emerge as profit-taking could take place later in the day if the Fed strikes a less hawkish tone than expected. In this scenario, the pair would target the 118.00 figure, a break below which would pave the way towards yesterday’s lows around 117.70, followed by the 117.30 area. On the upside, should the mentioned tops give up, the dollar will challenge the December 2016 low of 118.86. On the hourly charts, USDJPY derives some support from a slightly ascending 20-SMA while the RSI looks directionless, painting a neutral immediate technical picture.
BTCUSD has been retaining bullish bias this week along with traditional equity markets. Earlier today, the digital currency briefly exceeded the $40,000 psychological level to register nearly one-week highs around $41,700. However, the coin failed to preserve the bullish momentum and has retreated towards $40,000 in recent trading. Anyway, the fact that the most popular digital currency is entering a higher trading range suggests there is room for fresh bullish attempts at this stage. Also on the positive side, BTCUSD has settled above the 20-DMA, though is yet to confirm the latest breakout on a daily closing basis. On the weekly timeframes, BTC turned positive in recent trading but remains stuck between the 20- and 100-SMAs, currently at $46,000 and $34,000 respectively.