The euro could hold above cyclical lows ahead of the ECB meeting due on Thursday
The USD index keeps flirting with the 100.00 mark on Tuesday as traders await the US inflation report that could push the greenback above the key barrier as strong figures would add to Fed’s hawkishness towards monetary policy tightening. As such, EURUSD has settled below 1.0900, threatening the 1.0830 zone that represents the intermediate support on the way towards the 1.0800 two-year low. On the four-hour charts, the euro has been capped by the descending 20-SMA since Monday, albeit the RSI looks directionless at this stage, suggesting the pair could at least hold around the current levels instead of revisiting the 1.0830 zone. On the upside, a decisive bounce above the 20-DMA, today at 1.0990, would improve the near-term technical picture. Also, the euro could hold above cyclical lows ahead of the ECB meeting due on Thursday. Should the central bank strike a hawkish tone, the euro will rally across the market.
GBPUSD finished unchanged on Monday, but the selling pressure reemerged to send the pair back below the 1.3000 figure today. The pound extended losses to 1.2990, refraining from a deeper retreat for the time being. Still, the prices are holding just above November 2020 lows registered late last week in the 1.2980 area. In the immediate term, the cable could challenge this zone if the buying pressure surrounding the greenback keeps building. In this scenario, GBPUSD could threaten the 1.2900 mark, followed by 1.2850. On the upside, the immediate target now arrives at 1.3055, followed by the directionless 20-DMA, currently at 1.3120. On the four-hour timeframes, the pair remains capped by the descending 20-SMA while the RSI has settled just above the oversold territory, suggesting there is room for deeper losses in the near term. A daily close below 1.3000 would add to an even more downbeat technical picture.
USDJPY has been trending north for the eights session in a row on Tuesday, challenging fresh multi-year highs around 125.75. The next target for USD bulls arrives at 128.85 where 2015 peaks lie. Should the pair exceed this zone, the pair will register twenty-year highs. As the dollar refrains from a downside correction despite the overbought conditions, it looks like the pair could extend the ascent in the near term. As such, the prices may challenge the 126.00 figure next should the mentioned 2015 peaks give up. On the downside, the immediate support now arrives at 125.00, followed by the 124.70 and the 124.00 mark. On the weekly charts, the greenback keeps rallying for six bullish weeks in a row, with the prices holding well above the ascending 20-SMA.
The BTCUSD pair finished below the $40,000 figure for the first time since mid-March on Monday. Earlier today, the largest cryptocurrency by market capitalization extended losses to $39,100 before bouncing back into positive territory on the daily charts. Still, despite the rebound above $40,000, the technical picture suggests the pair could suffer deeper losses before a reversal takes place. On the downside, the next support arrives at $38,500, followed by the $37,500 intermediate support zone that could cap the potential selling pressure in the days to come. On the four-hour charts, there are some recovery attempts, with the RSI staying in oversold territory, which implies that BTC could trim losses further in the immediate term. The nearest target for bitcoin bulls now arrives at $40,800, followed by the descending 20-DMA, today at $41,700. A decisive bounce above this moving average would pave the way to a more robust recovery.