The common currency extended losses to the 1.0660 zone and could see a deeper retreat in the near term
The dollar holds steady today, holding above the 102.00 mark that turned back into support after yesterday’s plunge to a one-month low of 101.65. Later today, the Federal Reserve releases minutes of its latest policy meeting that could help lift the buck further if the central bank expresses a hawkish tone. Otherwise, another retreat in USD bulls could be expected. EURUSD is off local highs on Wednesday after failure to hold above 1.0700. The common currency extended losses to the 1.0660 zone during the European hours and could see a deeper retreat in the near term, targeting back the 20-DMA, currently at 1.0540. On the four-hour charts, the pair is approaching the 1.0650 area where the 20- and 200-SMA converge. Should the prices fail to hold above this region, the selling pressure will intensify in the immediate term.
The cable faced a barrier around the 1.2600 figure on Tuesday and reversed south as a result. Today, the pair extends the pullback, struggling to regain the upside momentum as the buck has switched into recovery mode nearly across the market. The pound was last seen changing hands just above the 1.2500 mark, shedding 0.16% on the day. As such, the focus remains on a slightly descending 20-DMA, currently at 1.2420. On the upside, the pair could revisit 1.2600 and even overcome this barrier should the greenback come back under the downside pressure later in the week. On the hourly charts, GBPUSD is now back below the key moving averages while the RSI is pointing lower in neutral territory, suggesting the path of least resistance is to the downside for the time being. In a wider picture, the pair stays pressured while below at least the 1.3000 mark last seen in April.
USDJPY plunged to mid-April lows around 126.35 on Tuesday amid a widespread sell-off surrounding the dollar. The pair bounced slightly today, holding around the 127.00 figure. Now, the 129.00 level represents the immediate upside target for USD bulls. On the hourly timeframes, the buck is now back above the 20-SMA, with the RSI keeps pointing slightly lower, painting a mixed technical picture. The near-term outlook remains downbeat as long as the pair stays below the 100-DMA, today at 127.55. Should the prices regain this moving average, the 130.00 mark will come back into the market focus. On the downside, failure to hold above the ascending 20-week SMA (today at 121.20) would imply that USDJPY has probably peaked already. Should the prices regain the 127.30 zone in the near term, the 128.00 mark will come bac into the market focus.
Bitcoin holds steady these days, oscillating around the $30,000 psychological level that remains in the market focus. Struggling for direction, the most popular digital currency is approaching the descending 20-DMA, today at $30,500. It looks like this moving average could deter BTC bulls, especially as buyers stay indecisive since the plunge in the crypto space that took place earlier this month. On the positive side, the daily RSI is pointing slightly higher in neutral territory, which implies that there is room for more robust gains in the near term. On the downside, the immediate support arrives at $28,600, followed by the $25,000 mark that capped the plunge witnessed earlier this month. On Wednesday, BTCUSD retains a modest bullish bias, adding to some improvement in the momentum. This implies that the coin could overcome the $31,000 figure in the coming days should the trend continue.