The euro could target fresh long-term lows around 1.0725 should the pressure intensify in the coming days
The USD index is back at two-year highs around 100.76, targeting the 101.00 figure due to a combination of safe-haven demand due to risk aversion and solid economic data out of the United States, fueling hawkish expectations for Fed’s aggressive tightening plan. Against this backdrop, EURUSD is back below the 1.0800 figure, holding just above two-year lows seen last week around 1.0757. Should the common currency derail this mark, the 1.0725 zone would come into the market focus. In the immediate term, the pair needs to regain 1.0800 in order to refrain from visiting fresh long-term lows. In particular, a daily close above the 1.0820-1.0830 zone would help shrug off some of the selling pressure. In a broader picture, however, risks remain tilted to the downside, especially as EURUSD failed to challenge the descending 20-DMA, currently at 1.0943.
The cable remains on the defensive after a failed attempt to regain the 20-DMA last week. The pair derives some support from the 1.3000 psychological level on Monday, with the downside pressure looking limited at this stage. However, should the prices derail this figure again, the technical outlook will deteriorate further, with November 2020 lows around 1.2970 staying in the market focus. Last week, the pound bounced off this zone to trim recent losses but was rejected by the mentioned moving average as the dollar continued the ascend across the market despite the overbought conditions. On the four-hour timeframes, the technical picture remains bearish as well, with the prices holding well below the key moving averages while the RSI is pointing slightly lower but is yet to enter the oversold territory, suggesting there is room for further losses in the immediate term.
USDJPY corrected lower briefly at the start of the day before regaining the bullish impetus during the Asian trading hours. As a result, the pair climbed to fresh twenty-year highs around 126.80, now threatening the 127.00 figure that represents the next barrier for USD bulls. On the downside, the immediate support now arrives at 125.90, followed by the 125.30 zone. As of writing, USDJPY was last seen changing hands around 126.62, up 0.22% on the day. The pair has been retaining strong bullish tone for the seventh week in a row already, with upside bias persisting despite the overbought conditions, suggesting the greenback could extend the ascent in the days to come as the Japanese yen stays extremely weak since March.
After some consolidation over the weekend, BTCUSD plunged dramatically on Monday. The pair dipped to mid-March lows around $38,500 earlier in the day before bouncing slightly in recent trading. Still, the coin stays below the $39,000 figure, with the $40,000 mark acting as the immediate resistance now. As the prices failed to hold above this level, the technical outlook for the most popular digital currency has deteriorated further following the latest sell-off, with the market focus shifting towards March lows around $37,000. On the weekly charts, bitcoin needs to hold above the ascending 100-SMA, currently at $35,700, in order to avoid deeper losses towards the $30,000 mark last seen in mid-2021. On the hourly timeframes, however, BTCUSD is shifting into consolidation phase amid the oversold conditions. A decisive bounce above the $39,000 mark would somehow ease the selling pressure surrounding the digital currency.