Should the 1.1050 region give up, the euro will retarget the 1.1000 figure as risk demand keeps abating, adding to dollar’s recovery momentum
The dollar turned green following four days of losses. The USD index bounced from local lows around 97.75 to regain the 98.00 figure on Friday. It looks like the greenback could add to gains later in the day as risk-on tone continues to abate. EURUSD is now back below the descending 20-DMA while still holding above the 1.1000 figure, finishing the week with solid gains due to a major retreat in the buck. The common currency was last seen changing hands around 1.1055, threatening the 1.1050 immediate support. Should this zone give up, the pair will retarget the 1.1000 figure as risk demand keeps abating, adding to dollar’s recovery momentum. On the hourly charts, the euro is stuck between the key moving averages while the RSI looks directionless, painting a neutral technical picture.
The cable briefly jumped above 1.3200 on Thursday but failed to preserve the upside momentum and retreated back to the flat-line on a daily close. Today, the pair keeps struggling for direction around 1.3140, refraining from a deeper correction despite the resurgent dollar’s strength. On the four-hour timeframes, the technical picture looks neutral at this stage, with the RSI directionless around the 54 figure while the prices are stuck between the 100- and 20-SMAs. Now, the pound needs to regain the 1.3200 mark in order to resume the bounce from November 2020 lows registered around the 1.3000 psychological figure earlier this week. Then, the descending 20-DMA, currently at 1.3260, will come into the market focus. In a wider picture, however, the tone surrounding the sterling remains bearish despite the pair finishing the week in the green territory after three consecutive weeks of solid losses.
USDJPY retains a strong bullish tone, treading water around multi-year highs registered at 119.11 earlier in the week. The pair failed to extend the downside correction on yesterday, jumping back to 119.00 on Friday. It looks like the dollar could refresh long-term tops in the near term, with the daily RSI pointing north despite the overbought conditions. Should the prices exceed the mentioned tops, the pair will target the 120.00 psychological level next. On the downside, the immediate support is represented by the 118.30 zone while the key barrier for dollar bears arrives at 116.20 where the ascending 20-DMA lies. As long as USDJPY stays above this level, the downside potential looks limited. In the immediate term, the pair may confirm a break above the 119.00 level as the overall dollar demand reemerged ahead of the weekend.
Following a three-day winning streak, the bitcoin price came back under pressure on Thursday, extending the retreat today. The BTCUSD pair peaked at $41,700 before correcting lower as sellers reemerged following a short-lived rally in the cryptocurrency market. Still, the coin is holding above the $40,000 figure, strengthened by the 20-DMA. Now that bitcoin regained the $40,000 level, it needs to stay afloat in order to confirm the latest breakout. In a bearish scenario, the most popular digital currency could retarget the $37,000 figure that capped the selling pressure earlier this month and in late February. As long as the prices stay above this critical support, the downside potential looks limited. In the immediate term, the technical picture suggests the BTCUSD pair could struggle for direction around $40,000, with the overall tone looking neutral in the shorter-term timeframes.