The common currency is likely to stay on the defensive in the near term, with the immediate support arriving at 1.0850
The USD index keeps advancing north for the seventh session in a row on Friday, challenging the 100.00 mark for the first time since May 2020 as safe-haven demand in combination with Fed’s hawkishness continues to support the US currency. It looks like the greenback could fail to overcome the mentioned barrier at the first, suggesting some profit-taking could take place ahead of the weekend. Against this backdrop, EURUSD briefly dipped below the 1.0850 region earlier in the day to bounce slightly in recent trading. The pair was last seen changing hands around 1.0868, down 0.09% on the day. The common currency is likely to stay on the defensive in the near term, with the immediate support arriving at the mentioned local low of 1.0850, followed by the key 1.0800 zone that capped the selling pressure one month ago. On the upside, the pair needs to regain the 1.1000 level (20-DMA) in order to retarget the 1.1200 short-term resistance.
The cable keeps holding in a tight range, with downside pressure reemerging on Friday. The pair dipped to the 1.3025 area for the first time since mid-March before trimming intraday losses slightly. GBPUSD continues to face resistance represented by the 20-DMA that has been capping gains for the cable for more than two weeks already. It looks like GBPUSD needs an extra impetus to overcome this barrier, currently at 1.3120. On the four-hour timeframes, the prices stay below the descending 20-SMA while the RSI is pointing lower in neutral territory, suggesting the recovery potential for the pair is still limited at this stage. On the downside, the cable could target the 1.3000 psychological level if the buying pressure surrounding the US dollar intensifies in the near term. GBPUSD was last seen trading around 1.3042, down 0.21% on the day.
USDJPY has been trending upwards since last Friday as dollar demand persists these days. The pair advanced to the 124.20 zone in recent trading, adding 0.12% on the day. Now that the US currency is back above the 124.00 figure for the first time this month, the 125.00 key barrier is back in the market focus. On the four-hour charts, the pair is well supported by the ascending 20-SMA while the RSI is pointing slightly lower, painting a mixed immediate technical picture. However, the overall trend remains bullish, and the path of least resistance is to the upside as long as the pieces stay above the 100-DMA, currently at 116.00. In a wider picture, USDJPY is finishing the fifth bullish week in a row and could extend the advance despite the overbought conditions.
After rejection from the $47,000 figure, the BTCUSD pair dipped below the 20-DMA earlier in the week. On Thursday, the coin derailed the $43,000 for the first time this month, trading marginally higher ahead of the weekend. Bitcoin was last seen changing hands around $43,600, slightly off intraday highs seen around $44,000 at the start of the day. It looks like the largest cryptocurrency by market capitalization could stay in the defensive in the near term. However, the downside potential looks limited as the coin could attract buying pressure somewhere around a slightly descending 100-DMA. The technical outlook for bitcoin deteriorated after the $45,000 figure and the 20-DMA turned into support. Now, the BTCUSD pair needs to hold above the mentioned 100-DMA in order to stay afloat and avoid a deeper retreat in the coming days. In the bullish case, the coin would bounce back above $45,000 to retarget the $48,000 zone that capped the rally in late March.