The dollar has retargeted long-term highs after the recent downside correction
The dollar has settled around the 105.00 figure following a two-day rally, staying resilient as safe-haven flows returned, with focus shifting to the US PCE data, the Fed’s preferred gauge of inflation, due later today. Against this backdrop, EURUSD fell back below 1.0500 and extended losses to the 1.0430 zone early on Thursday, threatening fresh local lows around 1.0400 that could be derailed if the greenback extends the ascent in the near term. As of writing, the pair was changing hands around 1.0440, just above the flat-line. Now that the 1.0500 mark turned back into resistance, downside risks surrounding the shared currency have intensified. On the four-hour charts, the euro remains well below the key moving averages, with the RSI pointing lower in neutral territory, suggesting the pair could stay on the defensive in the immediate tern as the dollar has retargeted long-term highs after the recent downside correction.
GBPUSD edged lower to the 1.2100 mark that has been capping losses so far. The pair bounced marginally since then, holding below 1.2150 during early European hours on Thursday. The cable lacked the momentum to settle above 1.2300 earlier in the week and has been on the defensive since then, with the prices clinging to the lower end of the extended trading range. As such, any significant ascent looks unlikely at this stage, with long-term lows seen below 1.2000 earlier this month staying in the market focus. On the downside, the nearest support now lies at 1.2100, followed by 1.2040. In a wider picture, the pound would stay on the defensive while below the 1.3000 psychological level last seen more than two months ago. The immediate upside target now arrives at 1.2170, followed by 1.2200 and the descending 20-DMA that lies just below the 1.2300 mark.
USDJPY jumped to fresh 24-year highs around 137.00 on Wednesday as the US currency rallied across the market. Earlier today, the pair briefly derailed the 136.00 mark before bouncing quickly but still staying in negative territory amid the overbought conditions. As such, the overall technical picture remains strongly bullish, with the uptrend intact, especially as the dollar holds above the ascending 20-DMA last seen nearly a month ago. Furthermore, the pair could hit 140.00 in the coming weeks should the US Treasury yields continue to move north in the short term. But first, the greenback will have to confirm a decisive break above the 137.00 hurdle on a daily closing basis. The next significant barrier for USD bulls arrives at 139.00. In the immediate term, some corrective movements could be expected amid overbought conditions, but the technical picture on the shorter-term timeframes stays upbeat at the moment.
The bitcoin price has been pressured for the fifth day in a row on Thursday as sellers are back in the game following a failed attempt to break above the $21,800 zone late last week. In the process, the largest cryptocurrency by market capitalization fell back below the $20,000 psychological level, suggesting the coin could see further losses ahead. Bitcoin has lost 17% in June, moving in line with other risky assets that will continue to set the tone for the digital currency in the months ahead. The price is currently down just over 70% from its 10 November all-time highs. The fact that bitcoin struggles to attract more decisive demand above the $20,000 mark suggests near-term risks still point to the downside. The nearest support now arrives at $19,600, followed by late-2020 lows seen around $17,600 earlier this month. The immediate bearish pressure remains limited while above this zone. On the upside, the BTCUSD pair needs to settle firmly above $21,800 so that to extend the bounce.