The cable remains within a bearish trend, trading just slightly above November 2020 lows seen at 1.3000 last week
The euro slipped to multi-day lows on Monday as the US dollar rallied across the board amid the recent hawkish message from Fed’s Powell that helped push US Treasury yields higher. The USD index rallied to nearly one-week highs just below the 99.00 figure before retreating in recent trading. As such, EURUSD bounced off local lows around 1.0960 and was last seen flirting with the 1.1000 figure as the selling pressure surrounding the common currency has eased somehow. However, downside risks continue to persist, with the euro staying vulnerable to deeper losses in the coming days as USD bulls remain in control in the absence of progress in the Russia-Ukraine peace dialogue. Now, both the short- and medium term outlook for the euro remains downbeat, with the pair clinging to long-term lows registered around 1.0800 earlier this month.
GBPUSD keeps trending higher in a cautious manner. The pair is flirting with the 1.3200 figure, treading water just below the descending 20-DMA that has been capping the upside potential these days. Notably, the pound stays afloat despite the resurgent demand for the US dollar, suggesting the sterling is more resilient now as compared to its European counterpart. Should the mentioned moving average give up anytime soon, the pair will target the 1.3240 next barrier that stands on the way towards the 100-DMA around 1.3400 last seen nearly one month ago. On the downside, the immediate support now arrives in the 1.3120-1.3110 area that has been capping the selling pressure since late last week. As long as the GBPUSD pair stays above the 1.3100 level, the technical picture remains neutral at this stage. In a wider picture, however, the cable remains within a bearish trend, trading just slightly above November 2020 lows seen at 1.3000 last week.
USDJPY extended the rally on Tuesday, exceeding the 120.00 psychological level for the first time in more than six years. The pair advanced to 120.80, now targeting the 121.00 figure as the Japanese yen continues to weaken dramatically. It looks like the prices could extend the ascent in the near term despite the overbought conditions both in the short- and long-term timeframes. Furthermore, the current fundamental and technical backdrop leaves the door wide open for the pair to trade up to 125.00 over the coming weeks. On the downside, the immediate support now arrives at 118.60, followed by the ascending 20-DMA, currently at 1176.75. On the hourly charts, the RSI is turning flat in the overbought territory, suggesting the bullish momentum could wane in the near term.
Bitcoin derived support from the 20-DMA and rallied to early-March highs on Tuesday. The BTCUSD pair rose to $43,300 before retreating below $43,000 while staying upbeat slightly above the descending 100-DMA. Now that the coin saw another bounce from the $40,000 psychological level, the prices could target the $45,000 figure next. However, it looks like the bullish momentum remains unsustainable at this stage, with downside risks persisting both in the short- and medium term. In the immediate term, the prices need to hold above the mentioned 100-SMA on order to preserve recent gains and retain a bullish bias. Otherwise, the $40,000 level would come back into the market focus as volatility in the cryptocurrency market remains elevated, albeit digital assets have settled in tighter trading ranges these days. On the four-hour timeframes, the technical picture looks neutral as the prices hold above the key moving averages while the RSI is pointing slightly lower after correcting from the 70 figure registered earlier today.