The fact that EURUSD derailed the 1.0800 level for the first time in two years adds to bearishness surrounding the common currency
EURUSD
The USD index rallied to fresh two-year highs around 100.75 as the benchmark 10-year US Treasury yield climbed back above 2.8% to notch fresh multi-year highs on Thursday. as a result, EURUSD derailed the 1.0800 figure to extend losses to 1.0757 before bouncing back above the mentioned mark on a daily closing basis. The selling pressure surrounding the common currency intensified after the ECB confirmed the end of its bond buying in the third quarter amid surging inflation. The bank adopted a more hawkish tone, but it wasn’t aggressive enough to lift the euro from long-term lows. EURUSD has settled just above 1.0800 on Friday, with bearish bias persisting on the daily charts. Despite the selling pressure has eased today, the fact that the pair derailed the 1.0800 level for the first time in two years adds to bearishness surrounding the common currency and could signal deeper losses in the coming days, especially as the USD index may target the 101.00 figure next.
USDJPY
USDJPY has been trending north for the eleventh session on a row on Friday. The pair notched fresh twenty-year highs around 127.67 earlier in the day and was last seen clinging to the upper end of the extended trading range. Now that the dollar exceeded the 127.00 figure, the market focus could shift towards the 130.00 level if the pair refrains from an abrupt downside correction in the coming days amid the overbought conditions. On the four-hour charts, the prices stay well above the ascending 20-SMA while the RSI is flirting with the 70 mark, signaling its readiness to enter overbought territory. The immediate target for USD bulls now arrives at 128.00 while on the downside, the nearest support should be expected at 126.00, followed by 125.25. should USDJPY retreat below the ascending 20-DMA, today at 123.25, the technical outlook for the pair would deteriorate.
BTCUSD
Earlier in the week, the bitcoin price notched one-month lows below the $40,000 psychological level as the cryptocurrency market suffered losses along with traditional stocks. During the subsequent bounce, the BTCUSD pair encountered resistance represented a slightly descending 100-DMA, today at $41,200, to give up most of the recovery gains. On Friday, the coin is oscillating around the $40,000 psychological level while trying to regain the upside bias. However, upside seems to be limited at this stage, especially as the digital currency stays below the mentioned moving average that represents the immediate significant barrier for bulls. On the weekly timeframes, the technical outlook has been deteriorating since the start of the month, with BTCUSD finishing the second bearish week in a row. Adding to a more downbeat tone, the prices have settled below the descending 20-week SMA, today at $42,900.
XAUUSD
Gold prices came off one-month highs seen around $1,981. Still, the precious metal stays relatively afloat due to the persisting safe-haven demand and could regain the $2,000 mark if the geopolitical situation continues to deteriorate next week. On the downside, the immediate support now arrives at $1,960, followed by the 20-DMA, currently at $1.940. The bullion was last seen changing hands around $1,973, down 0.61% on the day. Should the downside pressure intensify in the near term, the prices could derail the mentioned nearest support and thus trim this week’s gains. Still, the technical picture on the weekly timeframes remains upbeat, with the RSI pointing north while the prices are holding well above the key moving averages. As such, the yellow metal could regain the bullish bias after some hesitation if the mentioned 20-DMA stays intact in the coming days.
