The pound fell towards fresh March 2020 lows just above 1.1400
The US dollar has settled below 110.00 after yesterday’s spike to fresh twenty-year highs around 110.80. The USD index derives support from the 109.50 zone so far, refraining from a deeper retreat despite overbought conditions. In a wider picture, the greenback has room to advance even higher due to rate differentials on the back of a hawkish Federal Reserve. However, in the immediate term, the buck could correct further should the ECB deliver a hawkish hike. EURUSD fell to fresh lows around 0.9855 before rebounding back to parity on Wednesday, a decisive break above which would pave the way towards a more sustained recovery. In the immediate term, the euro needs to overcome the descending 20-DMA, today at 1.0025, in order to see a mode decisive ascent from long-term lows. As of writing, the pair was changing hands around 0.9986, down 0.12% on the day.
The pound fell towards fresh March 2020 lows just above 1.1400 before turning positive on a daily close on Wednesday. The pair failed to extend the bounce to come under renewed selling pressure today as the buck stays resilient across the market despite the recent retreat amid profit-taking. After a brief spike towards 1.1540, the cable has settled just below the 1.1500 mark during the early European hours on Thursday, shedding 0.30% on the day. The pound stays below the 1.1600 figure following the latest slump, with bearish potential persisting at this stage, especially as the pair holds well below the descending 20-DMA, today at 1.1757. The immediate upside target now arrives at 1.1540, followed by the 1.1600 zone. On the four-hour charts, the bearish momentum reemerged as the RSI turned south, suggesting the selling momentum could persist in the near term.
The yen is trading down to fresh lows since 1998. USDJPY exceeded the 144.00 figure to extend the ascent to the 145.00 zone on Wednesday. As a result, the daily RSI extended the ascent in overbought territory, but the pair is likely to continue the rally in the near term, targeting fresh long-term tops. As such, the pair keeps rallying while holding well above the ascending 20-DMA, today at 138.10. The dollar was last seen trading around 144.10, up 0.28% on the day. In the near term, USDJPY needs to hold above the 144.00 mark for the overall bullish momentum to persist. A decisive rally above the mentioned highs would bring fresh long-term tops into the market focus. The next major target for USD bulls now arrived at 147.00. On the downside, the prices could get back below 142.75 in case of profit-taking.
Following a downbeat start to the week, the bitcoin price extended losses to June lows around $17,500 on Wednesday before bouncing back above $19,000 on daily closing. Today, the BTCUSD pair retains a modest bullish bias, but still struggles to regain the $20,000 psychological level that represents the immediate target for the coin in the near term. The technical picture shows that a failure to get back above $20,000 could bring renewed selling pressure to the market. Furthermore, the largest cryptocurrency by market capitalization could refresh June lows. If the $17,500 support level is tested, the overall outlook in the market would deteriorate further. Falling below this level could result in a dip towards the $16,000 next. On the upside, sustained recovery above $20,000 would open the road towards the $20,500 and $21,800 intermediate barriers on the way to the $23,000 mark last seen three weeks ago.