The Aussie plunged to May 2020 lows, losing ground for the fourth session in a row
The US dollar surged to fresh two-decade highs around 114.75 and was last seen clinging to the upper end of the extended trading range as US Treasury yields stays elevated while safe-haven demand persists. As such, EURUSD plunged below 0.9550 for the first time in more than twenty years, with energy crisis in Europe adding to bearish tone surrounding the shared currency. Should the pressure persist, the pair could threaten the 0.9500 mark next. The pair extended losses to 0.9535 and was last seen clinging to the lower end of the trading range, shedding 0.44% on the day. The daily RSI is pointing lower in oversold territory, suggesting the pair would stay pressured so far despite oversold conditions. On the upside, the immediate target now arrives at 0.9600.
The cable plunged to historic lows at the start of the week before bouncing partially. GBPUSD fell to the 1.0350 zone to trim losses to the 1.0700. Despite the subsequent bounce, the pair stays on the defensive, licking wounds after aggressive sell-off. The pound was also pressured by concerns over the UK’s fiscal package as traders doubted that new measures, including tax cuts, could cure the British economic problems. On Wednesday, the pair turned slightly negative, holding just below 1.0700. In the near term, the cable could stay on the defensive despite oversold conditions. Should the prices fall back below 1.0500, the pair could threaten the 1.0300 next support zone, followed by the 1.00 mark. On the hourly timeframes, the RSI remains in neutral territory, pointing south while the price continues to challenge the directionless 20-SMA.
USDJPY has steadied after the recent jump in volatility, trading below 145.00 on Wednesday. Last week, the dollar briefly fell to 140.35 before bouncing back above the ascending 20-DMA that now continues to act as a key support zone. As such, the pair refrained from a major slump to regain the bullish bias that brought the prices back above 144.50. The pair was last seen changing hands around 144.70, shedding less than 0.1% on the day. USDJPY holds steady at the mentioned levels, refraining from another retreat, suggesting the pair could resume the ascent in the near term. After some hesitation, USDJPY could climb back to the mentioned tops and refresh multi-year highs beyond 146.00. On the downside, the nearest support is represented by the mentioned moving average, today at 143.11, followed by the 141.50 region.
The Aussie plunged to May 2020 lows on Wednesday, losing ground for the fourth session in a row. The pair dipped to the 0.6360 region, staying bearish after a decisive break below 0.6400. In the process, the daily RSI has entered oversold territory, retaining negative bias, which implies that the downside momentum could slow down from here, but the overall bearish tone is likely to persist so far. In the near term, the Australian currency needs to regain the at least the 0.6400 mark, followed by the 0.6450 zone and 0.6520. However, a bearish bias is likely to persist as long as the pair stays below the descending 20-DMA, today around 0.6690. On the four-hour timeframes, the Aussie remains capped by the 20-SMA, with sellers in control both in the short- and longer-term charts.
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