The cable derailed the 1.2000 figure for the first time since late-July
The dollar is seen slightly firmer across the board on Thursday, extending gains for the sixth session in a row. The USD index is approaching the 107.00 figure that capped gains earlier this month. Should the greenback overcome this barrier any time soon, the 107.45 intermediate resistance zone will come back into the market focus. Later in the day, the buck could be affected by US existing home sales and the weekly initial jobless claims data. EURUSD finished slightly higher on Wednesday to come under some pressure today, holding just below the directionless 20-DMA, today at 1.0206. As such, the pair struggles to regain the 1.0200 figure, looking for direction these days. Of note, the shared currency also refrains from a deeper retreat, staying above parity even as the greenback extends the accent, suggesting the pair could stay afloat in the short term before attracting more sustained demand.
The cable derailed the 1.2000 figure on Thursday for the first time since late-July as the buying pressure surrounding the US dollar keeps building. After a brief sell-off, the pair erased intraday losses to get back into positive territory in recent trading as dip buyers helped prevent the pair from an even deeper decline. The pound was last seen changing hands around 1.2055, up less than 0.1% on the day. However, the recovery potential looks limited at this stage, especially as the pair is holding below the 20-DMA, today at 1.2117. On the four-hour charts, the downside momentum has eased after the recent break above the 200-SMA. However, as the daily RSI looks directionless in neutral territory while the prices stay below the key SMAs, the path of least resistance remains to the downside for the time being. On the longer-term timeframes, the technical picture stays bearish as well, with the prices holding below the key weekly SMAs while the RSI keeps pointing slightly lower.
USDJPY regained a solid bullish bias earlier in the week and has been buoyed since then. The pair advanced to 135.50 yesterday to finish above 135.00. Today, the dollar retains bullish bias, holding around 135.20 during the European trading hours. Also, the dollar now holds above the descending 20-DMA, today at 134.37. Earlier in the month, the prices managed to hold above the 100-SMA, adding to a resilient technical picture. In the near term, USDJPY needs to confirm the recent break above 135.00 for the bullish momentum to persist. A decisive break above the 135.50 region on a daily closing basis would bring long-term highs above 139.00 back into the market focus. In case of a downside correction, the nearest support should be expected around 134.70, followed by the mentioned 20-DMA.
Bitcoin gave up 2.18% on Wednesday, marking the fourth consecutive day of declines for the largest cryptocurrency by market capitalization. The selling pressure intensified both in financial markets and crypto space as the FOMC meeting minutes revealed a more hawkish stance than expected. As a result, BTCUSD slipped from the $24,000 mark to find support around $23,200. Earlier in the week, the coin peaked above $25,000 but failed to preserve the upside momentum and attracted some profit-taking instead, suggesting the digital currency is not ready to stage a straightforward and sustained rally. Still, the overall tone in the cryptocurrency market has improved over the last several weeks, with bitcoin holding above the $20,000 threshold since mid-July. On Thursday, the BTCUSD pair has settled just above the flat-line, struggling for direction after the recent sell-off.