The shared currency struggles for direction, with 1.0200 acting as the immediate upside target
The USD shrugged off the recent pressure, switching into recovery mode after bouncing from the 106.40 support zone. The greenback is now back above the 107.00 figure, albeit the upside momentum looks limited for the time being. However, as risk sentiment has deteriorated since the New York session, the safe-haven US currency could at least retain bullish bias in the near term. The index was last seen changing hands around 107.13, up less than 0.1% on the day. EURUSD came across the descending 20-DMA that triggered a retreat on Wednesday. The pair was rejected from the 1.0270 zone to finish below 1.0200. Today, the shared currency struggles for direction in early European hours, holding onto modest gains, with 1.0200 acting as the immediate upside target for the time being. On the four-hour charts, the pair is stuck between the key moving averages while the RSI points lower in neutral territory, which implies that the bullish potential is limited for now. Should the ECB meeting disappoint later today, the euro could see a steep decline below 1.0100.
The pound switched into defensive mode after three days of gains on Wednesday as the ascent was capped by the descending 20-DMA, today at 1.2020. The cable finished off highs on Tuesday to extend the descent today as the dollar keeps regaining ground nearly across the board, albeit at a modest pace. The mentioned moving average has been capping gains since early June, suggesting the pair may need extra impetus to overcome the barrier. The cable looks unlikely to overcome this hurdle any time soon, with bearish risks persisting at this stage. The pair was last seen changing hands around 1.1940, down 0.22% on the day. Failure to hold above 1.2000 adds to a more bearish technical outlook in the short term, with the overall trend staying bearish as well. On the shorter-term charts, GBPUSD signals further losses, with key SMAs turning back into resistance levels.
USDJPY retains bullish bias on Thursday, staying above the 138.00 figure during the European hours. The pair came off fresh 24-year highs seen around 139.40 last week but stays afloat despite the overbought conditions, refraining from a decisive bearish correction. The pair also continues to hold above the ascending 20-DMA, today at 136.80, suggesting USD bulls are still in the game. On the shorter-term timeframes, the prices have climbed back above the key simple moving averages while the RSI looks mixed-to-positive, suggesting the bullish bias could persist in the near term. USDJPY was last seen changing hands around 138.60, up 0.26% on the day. In case of profit-taking, the greenback may threaten the 138.00 zone, followed by the mentioned 20-DMA. In a wider picture, the overall bullish trend remains intact while above at least the 120.00 mark last seen in March.
The bitcoin price briefly rallied to mid-June highs on Wednesday before losing steam later in the day. After a brief break above $24,000 for the first time in over a month, BTCUSD slipped into negative territory to finish 0.80% lower. Today, the pair stays under pressure, oscillating around $23,000. As such, the rally in the cryptocurrency market has waned, but the selling pressure looks limited for the time being. On the weekly charts, the coin is still around 8% higher. Despite the recent pullback, the overall technical picture has improved further after the prices derailed the $24,000 mark as the prices confirmed a breakout from the $18,000-$22,000 trading range. The question now is whether bitcoin will manage to preserve gains and avoid clipping back into the mentioned range. As the broader trend remains bearish, the current ascent could be just a dead cat bounce.