The USD index had to ease from session highs in recent trading as investor sentiment improved somewhat
The dollar is oscillating around 102.50 on Thursday, supported by a risk-off tone that dominates global financial markets ahead of major events. However, the USD index had to ease from session highs in recent trading as risk sentiment improved somewhat, with US stock index futures turning positive after an early dip. EURUSD failed to overcome the 1.0750 intermediate barrier yesterday to come under renewed selling pressure. The shared currency was last seen trading marginally above the 1.0700 handle, followed by the 1.0670-1.0650 support zone. Should the ECB disappoint by a more cautious tone later today, the pair could see solid losses in the near term. On the four-hour charts, the technical picture looks neutral-to-bearish as the RSI is directionless around the 52 figure, while the prices trend lower while staying above the 20-SMA. The euro needs to hold above 1.0700 on a daily closing basis in order to stay afloat in the near term.
GBPUSD stays pressured after failure to regain the 1.2600 mark earlier in the week. The cable has been losing ground for the second day in a row, flirting with the ascending 20-DMA during the European trading hours. The pair was last seen changing hands marginally above the 1.2500 figure, down 0.20% on the day. Should this level give up anytime soon, the 1.2460 intermediate support will come back into the market focus. Albeit the prices are now slightly off the session lows, the recovery potential looks too modest to bet on regaining upside bias during the New York trading session. For the time being, the outlook for the pair looks neutral-to-bearish while in a wider picture, the pound remains within a strong bearish trend, holding just above two-year lows seen in May around 1.2150. The downtrend remains intact while below the descending 200-DMA, today around 1.3300.
USDJPY rallied to fresh twenty-year highs around 134.55 early on Thursday before erasing intraday gains. The pair has slipped below 134.00 and has been clinging to session lows around 133.50 since then. As a result, the daily RSI reversed south but still remained in overbought territory, suggesting there is room for a deeper retreat in the near term. On the downside, the immediate support now arrives at 133.00, followed by the 132.50 zone. On the hourly charts, the pair has lost the bullish momentum, with the RSI pointing lower while the prices dipped back below the descending 20-SMA. Still, the USDJPY pair stays within a strong uptrend that is unlikely to be derailed anytime soon. After the current downside correction, the pair may resume the ascent towards fresh multi-year highs, with the next major target arriving at 135.00.
The bitcoin price briefly exceeded the $31,500 zone at the start of the week but failed to preserve gains and retreated back to the $30,000 psychological level that remains in the market focus as the coin has been oscillating around this figure for a month already. After rejection from the mentioned high, the BTCUSD pair briefly dipped to the $29,300 zone that capped losses earlier in the week. On Thursday, the largest cryptocurrency by market capitalization treads water just above $30,000, adding 0.5% on the day after a nearly 3% slump yesterday. As bitcoin has failed to overcome the $32,000 zone on many occasions in choppy trading as the crypto space has been affected by inflation concerns along with traditional financial markets. At this stage, bitcoin is unlikely to escape the familiar trading range in the short term, suggesting the price will continue to stay depressed around $30,000 without a bullish catalyst.