The euro may see another volatile session, with the 1.0250 intermediate barrier staying in the market focus
The dollar stays on the defensive after yesterday’s sell-off in the aftermath of the Fed’s less hawkish meeting. However, the USD index still holds above the 106.00 figure, looking steadier in early European deals as risk-on tone abates gradually. As such, EURUSD failed to extend the rally, struggling for direction around the 1.0200 mark. In the near term, fresh economic data out of the Eurozone and the United States would set the tone for the shared currency. US PCE report could put the buck back under pressure if the figures reflect a slowdown in inflation. As such, the pair may see another volatile session, with the 1.0250 intermediate barrier staying in the market focus as short-term bearish risks surrounding the greenback persist. On the four-hour charts, the prices hold above the key moving averages while the RSI looks directionless, painting a neutral immediate technical picture. On the downside, the immediate support now arrives around 1.0180 where the descending 20-DMA lies.
GBPUSD rallied more than 1% on Wednesday, retaining bullish bias today as the greenback struggles to attract renewed demand so far. The cable extended the ascent towards the 1.2190 zone for the first time in a month, with the 1.2200 figure representing the immediate barrier for GBP bulls that could deter buyers at this stage, especially as the greenback resists the downside pressure. The pair was last seen clinging to the upper end of the extended trading range, adding 0.31% on the day. On the positive side, the pound has settled above the 20-DMA, today at 1.1990 while the daily RSI keeps pointing north, which implies that the pair could at least keep the upside bias intact, barring renewed risk aversion across the markets. On the weekly timeframes, the prices extended the bounce from long-term lows seen this month around 1.1760.
USDJPY briefly rallied to 137.45 before turning negative on Wednesday. The pair finished below the 20-DMA, extending the retreat today. The dollar slipped to three-week lows just above the 135.00 figure that acted as support and triggered a mild bounce in recent trading. Still, the path of least resistance remains to the downside in the immediate term, especially as the prices have settled back below the mentioned moving average, today at 136.87. Also, USDJPY now needs to regain the 137.00 mark in order to shrug off some of the selling pressure. A failure to hold above 135.00 could send the greenback to the key support around 134.30. On the shorter-term timeframes, the bearish bias remains solid but it’s still too early to bet on more substantial losses in the near term, with the 137.00 figure remaining in the market focus at this stage. In a wider picture, the prices are holding just marginally below 24-year highs registered around 139.40 earlier in the month.
The bitcoin price rallied nearly 8% on Wednesday after the Federal Reserve hinted that it could slow the pace of its hiking cycle at some point, sparking a broad-based rally across risky assets including cryptos. The BTCUSD pair finished just below the $23,000 mark to extend the ascent on Thursday. Earlier in the day, the coin registered nearly one-week highs around $23,400 before retreating slightly in negative territory. The question now is whether bitcoin could hold onto the latest gains and extend the advance in the days to come as the overall tone among risky assets remains fragile and vulnerable. A failure to hold above $23,000 on a daily closing basis would be early evidence of a false bounce. On the upside, a decisive break above the mentioned highs would pave the way towards the $23,700 intermediate barrier on the way towards the $24,000 mark.