The euro could extend the ascent in the near term
The USD index remains pressured by positive risk sentiment that dominates financial markets since the start of the week. The greenback derailed the 104.00 mark, a break below which would pave the way to deeper losses in the near term. The next support should be expected at 103.80, followed by last week’s lows around 103.40. As such, the euro retains bullish bias, extending its rebound due to a weaker dollar. EURUSD has finally exceeded the 1.0550 intermediate resistance, now targeting the 1.0600 next barrier, followed by a significant 20-DMA, currently at 1.0620. Now that bulls are back in control and the dollar remains offered, the euro could extend recovery in the near term, with 1.0600 in focus. Last week, EURUSD was rejected from this figure to finish slightly lower, suggesting the pair may need extra drivers in order to make a decisive and sustained break above 1.0600.
GBPUSD remains in positive territory since Monday after a plunge witnessed ahead of the weekend. The pair is now regaining ground around the 1.2300 figure after failure to overcome the 1.2325 region earlier in the day. Should the pound exceed the 1.2300 mark ion a daily closing basis, a slightly descending 20-DMA, today at 1.2423, will come back into the market focus. However, the pair is unlikely to regain this moving average anytime soon as the greenback remains buoyed despite some retreat. In the four-hour charts, GBPUSD is inching higher, holding above the ascending 20-SMA, but the directionless RSI in neutral territory suggests the upside potential is limited from here. On the downside, the immediate support now arrives at 1.2250, followed by 1.2200 and 1.2170. In a wider picture, bearish risks persist as long as the prices stay below the 200-week SMA, today at 1.3080.
USDJPY rallied back to the area of long-term highs ahead of the weekend and has been retaining bullish bias since then. Today, the pair extended gains to the 135.50 area, holding just a few pips away from fresh two-decade tops. The dollar was last seen clinging to the upped end of the intraday range, adding 0.30% on the day. The nearest support now arrives at 135.00, followed by 134.70 and the 134.50 zone. The daily RSI points slightly higher today, with the overall technical picture remaining bullish, especially as the buck last week refrained from a deeper bearish correction despite the extremely overbought conditions. Adding to positive outlook, the pair stays above the ascending 20-DMA, currently at 131.85. On the hourly timeframes, the technical picture looks bullish as well, with the RSI pointing north just below the 52 figure while the prices are holding above the key simple moving averages.
Bitcoin continues its recovery from late-2020 lows seen around $17,600 last week. The BTCUSD pair regained the $20,000 psychological level and was last seen the $21,200 zone, adding around 3% on the day. The largest digital currency could extend the rebound in the near term, but the overall picture remains bearish, suggesting the selling pressure will reemerge after a so-called dead cat bounce. Earlier in the day, the coin was rejected from the $20,400 zone but managed to stay above $21,000, which implies that the prices could at least refrain from another sell-off in the immediate term. On the weekly charts, the technical picture remains downbeat after last week’s plunge, with bearish risks persisting as long as BTC stays below $45,000. Now, the price needs to hold above the $20,000 figure to avoid another deep sell-off to multi-year lows, this time probably around $15,000.