In a wider picture, BTC could resume the ascent towards the $50,000 figure due to a potential demand from long-term investors
The USD index turned marginally lower on the day in recent trading, oscillating around 103.50 during the European hours. The buck finished higher on Monday as the yield on the US 10-year Treasury note touched 3% for the first time since late 2018 before correcting slightly lower today. Against this backdrop, EURUSD dipped back to 1.0500 at the start of the week while trying to regain the bullish bias in early European deals. The pair still lacks the impetus to overcome the 1.0600 immediate barrier ahead of the Fed’s two-day meeting. The central bank is widely expected to raise rates by 50 basis points. Should the Fed hint at the prospect of aggressive tightening in the months ahead, the greenback will receive another boost and could derail the 104.00 mark following the meeting.
GBPUSD bounced slightly off long-term lows seen last week just above the 124.00 figure. On Tuesday, the cable has settled above 1.2500, adding 0.28% on the day. The selling pressure has abated since yesterday, but the pound still lacks the upside momentum to get back above the 1.2600 level that capped gains last week, suggesting the prices could dip towards fresh long-term lows after some hesitation. On the four-hour charts, the technical picture remains neutral, as the prices are holding around the 20-SMA while the RSI is directionless around 44. On the upside, the key immediate target arrives at 1.2555, followed by the 1.2615 zone. Both in the short- and medium term, risks for the pair remain skewed to the downside for the time being, which implies that the prices could derail the 1.2400 mark to notch fresh long-term lows in the coming days.
USDJPY struggles for direction after a brief rally above 131.00 last week. The dollar is sitting just above 130.00 during the European hours on Tuesday. As the pair refrained from a more pronounced bearish correction ahead of the weekend, it looks like the buck could resume the ascent to retest the 131.00 barrier in the coming days, especially as the Federal Reserve is expected to deliver a hawkish rate hike while the Bank of Japan plans to keep interest rates low despite rising inflation. On the hourly timeframes, the prices keep flirting with the 20-SMA while the RSI looks directionless in neutral territory. In a wider picture, USDJPY stays resilient despite the overbought conditions, targeting fresh twenty-year highs around 132.00.
The bitcoin price has settled below the $40,000 figure after another failed attempt to overcome the 20-DMA, currently at $39,600. The BTCUSD pair is sitting around $38,500 on Tuesday, adding less than 1% on the day. In the near term, downside risks continue to persist while below the 100-DMA, today at $40,900. On the four-hour charts, the technical picture looks neutral as the RSI is directionless around the 47 mark while the price is now stuck between the 20- and 100-SMAs. On the downside, failure to hold above $38,000 would pave the way towards two-month lows seen last week around $37,300. At this stage, the path of least resistance remains to the downside. In a wider picture, the most popular digital currency could resume the ascent towards the $50,000 figure due to a potential demand from long-term investors.