The USD index retains bullish bias for the third session in a row on Wednesday
The euro stays pressured since a brief rally witnessed at the start of the week. EURUSD pair failed to challenge the 1.0800 mark to come back on the defensive as dollar demand reemerged. The USD index retains bullish bias for the third session in a row on Wednesday but still struggles to overcome the 102.00 mark that remains in the market focus ahead of Friday’s US employment report. A daily close above this level would help improve the immediate technical picture somehow while the common currency needs to hold above 1.0700 in order to avoid a deeper retreat at this stage. On the four-hour charts, the pair remains capped by the 20-SMA while the RSI looks directionless in neutral territory, suggesting the upside potential remains limited for the time being. In a wider picture, the euro remains depressed while below at least the 200-week SMA, currently at 1.1420. This moving average capped the upside momentum in February.
GBPUSD remains under pressure since Tuesday. The cable advanced to 1.2660 at the start of the week before retreating back below the 1.2600 zone today. GBPUSD was last seen changing hands around 1.2588, down 0.09% 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 between 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 129.55 on Wednesday, retaining a bullish tone for the third day in a row. The pair exceeded both the 20-DMA and the 129.00 mark and was last seen clinging to the upper end of the trading range. On the hourly timeframes, the buck is holding back above the 20-SMA, with the RSI has reversed lower in overbought territory, suggesting the pair could struggle to extend the ascent in the immediate term. The near-term outlook has improved, however, since the pair climbed back above the ascending 20-DMA, today at 128.93. Should the prices confirm the latest rebound on a daily closing basis, 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.
Bitcoin rallied to $32,300 yesterday, extending the rally from the $29,000 mark. On Wednesday, however, the digital currency struggles to continue its ascent, trading around the flat-line. The BTCUSD pair is holding around $31,500 on Wednesday, shedding just 0.05% on the day. On the positive side, the most popular cryptocurrency stays well above a slightly ascending 20-DMA while also holding above the $30,000 psychological level these days. Should the coin regain the upside momentum anytime soon, the $32,600 intermediate barrier will come back into the market focus. This hurdle is followed by the $34,400 zone while the key target remains around last month’s peaks around $40,000. On the downside, bitcoin could threaten the $28,000 figure if both the $30,000 mark and the mentioned 20-DMA give up in the near term. In a wider picture, the outlook for bitcoin remains cloudy as financial markets remain unstable and vulnerable.