USD bulls continue to dominate the market after a short-lived retreat
Risk aversion coupled with the renewed rally in US Treasury yields helped the dollar regain the upside momentum after a short-lived dip below the 100.00 mark. On Friday, the USD index advanced towards the 101.00 figure, refreshing long-term highs after Powell’s message as the Fed’ Governor said it is appropriate to be moving more quickly and front-end loading. Against this backdrop, EURUSD slipped to 1.0790 and could threaten the 1.0760 key support that has been capping losses so far. As of writing, the pair was changing hands around 1.0800, staying on the defensive. On the weekly timeframes, however, the common currency little changed. In the immediate term, the path of least resistance is to the downside, as USD bulls continue to dominate the market after a short-lived retreat.
Earlier in the week, GBPUSD failed to overcome the descending 20-DMA that has been capping gains for nearly a month already. As USD bulls reemerged, the pair plunged abruptly on Friday to refresh November 2020 lows around 1.2860. The technical picture has deteriorated further after the cable failed to hold above 1.2900. Of note, the daily RSI is pointing south but is yet to enter the oversold territory, suggesting there is room for even deeper losses in the near term. On the other hand, the cable has reached a significant support zone that could trigger a bounce ahead of the weekend. In this scenario, GBPUSD could trim intraday losses, but the 1.3000 mark will likely continue to act as resistance at this stage. On the weekly timeframes, the pair is now well below the 200-SMA, adding to a bearish technical picture.
USDJPY is back on the offensive after a short-lived and modest downside correction witnessed earlier in the week. The pair came off fresh twenty-year highs seen around 129.40, but managed to hold above 127.00 during the correction and regained the upside bias eventually. During the European session on Friday, the dollar is flirting with the 128.50 region, refraining from revisiting the 129.00 mark, followed by the 130.00 next major target for USD bulls. On the four-hour charts, USDJPY is flirting with the ascending 20-SMA while the RSI struggles for direction, suggesting the pair lacks the bullish impetus to get back to the mentioned highs at this stage. On the downside, the immediate support arrives at 127.70, followed by 127.40 while this week’s lows lie around 126.20.
Bitcoin climbed to local highs around $43,000 before retreating abruptly amid profit-taking to finish lower on Thursday. In the process, the BTCUSD pair derailed both the 20- and the 100-DMAs, staying on the defensive today. Earlier in the day, the coin briefly dipped below $40,000 before bouncing slightly. In the near term, BTCUSD needs to hold above the $40,000 mark in order to regain the mentioned moving averages. Otherwise, a deeper retreat could be witnessed before a solid bounce take place. On the downside, the $39,100 region represents the immediate support followed by mid-March lows seen around $38,500 at the start of the week. Should the coin recover above $41,000, the $43,000 figure will come back into the market focus. On the weekly charts, the BTCUSD pair looks flat ahead of the weekend trading.