The euro now needs to hold above the 1.0700 figure in order to stay afloat in the near term
The USD index switched into recovery mode after yesterday’s dip to more than one-month lows. The dollar derived support from the 101.30 area to get back to the 101.70 zone on Tuesday. Despite the bullish bias reemerged, downside risks continue to persist at this stage, especially as prices are still holding below the 102.00 figure for the time being. As such, EURUSD fell back to 1.0730 from the yesterday’s peak of 1.0785. As bears regained control, the common currency is likely to see a deeper retreat before another rally takes place. The euro now needs to hold above the 1.0700 figure in order to stay afloat in the near term. It looks like the European currency could struggle for some time before resuming the ascent if risk-on tone reemerges after a pause. So far, risk demand looks indecisive after a positive start to the week.
GBPUSD turned slightly lower after four days of modest gains. The pair failed to overcome a local barrier, refraining from a more decisive rebound, as traders remain cautious these days. The cable advanced to 1.2660 at the start of the week before retreating back to the 1.2600 zone on Tuesday. GBPUSD was last seen changing hands around 1.2612, down 0.29% on the day. The key bullish target remains at 1.2700, followed by a more significant barrier in the 1.3000 zone last seen on April 22. On the shorter-term timeframes, the pound looks relatively steady while holding above the key moving averages. The immediate support now arrives at 1.2570 while last week’s lows lie in the 1.2470 area. In a wider picture, the technical outlook for the pair has improved somehow over the last couple of weeks, but the broader bearish trend remains intact at this stage. Furthermore, GBPUSD remains well below the key weekly moving averages.
USDJPY extended the ascent to 127.80 on Monday, retaining a bullish tone today. The pair exceeded the 128.00 mark to advance to the 128.35 zone before retreating marginally in recent trading. On the hourly timeframes, the buck is holding back above the 20-SMA, with the RSI points higher in neutral territory, painting an upbeat technical picture. The near-term outlook remains downbeat, however, as long as the pair stays below the 20-DMA, today at 128.60. 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.
The bitcoin price surged to three-week highs above $32,000 earlier today before correcting slightly lower. The BTCUSD pair retains bullish bias after a rally witnessed yesterday when the coin exceeded the $30,000 psychological level. Now, the largest digital currency needs to hold above $31,000 in order to stay afloat. However, the upside potential is likely to stay limited in the near term. As of writing, the coin was changing hands around $31,500, up 2.69% on the day. On the positive side, the prices are holding above the 20-DMA while the daily RSI points north in neutral territory, suggesting the most popular cryptocurrency could at least stay afloat in the near term. In a wider picture, bitcoin still needs to get back above the 20- and 100-week SMAs, today at $37,000-$38,000, in order to see more robust gains and retarget the $40,000 key target. On the downside, the $30,000 mark, followed by the mentioned 20-DMA, stay in the market focus.