Demand for the US currency reemerged as risk tone turned sour again
The dollar is back on the offensive, adding 0.74% on the day after yesterday’s drop by 1%. The USD index found a local bottom at 112.50 to close just above the 113.00 figure. Now, the immediate resistance arrives at 114.00. As such, EURUSD has already erased most of yesterday’s gains to settle below 0.9650 during the European deals on Thursday. A day earlier, the pair dipped to fresh multi-year lows around 0.9535. The daily RSI is pointing lower in neutral territory, suggesting the pair would stay pressured so far as the dollar resumed the ascent after a short-lived retreat. On the upside, the immediate target now arrives at 0.9700, followed by the 0.9750 zone that capped yesterday’s rally. On the downside, a failure to hold around the current levels could bring the shared currency back under the 0.9500 mark where the mentioned multi-year lows arrive.
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 1.0900 during the rally witnessed on Wednesday. Despite the recent bounce, the pair stays on the defensive, licking wounds after aggressive sell-off. The pound was 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 Thursday, the pair turned negative again, holding just below 1.0800. In the near term, the cable could stay on the defensive despite oversold conditions. Should the prices fall back below 1.0650, the pair could threaten the 1.0500 next support zone, followed by the 1.0300 mark. On the hourly timeframes, the RSI remains in neutral territory, while the price continues to challenge the 100-SMA.
USDJPY has steadied after the recent jump in volatility, trading below 145.00 on Thursday. 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 144.65, adding 0.34% 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 143.30, followed by the 141.50 region.
The price of bitcoin still struggles to regain the $20,000 psychological level that continues to act as the immediate upside target for the coin. BTCUSD briefly rallied above this mark earlier in the week, but failed to preserve gains and retreated instead. After adding 1.7% on Wednesday, the pair struggles for direction today, holding around $19,300. As such, bitcoin failed to stage a sustained bounce, lacking buying interest at the current levels. Furthermore, downside risks could reemerge if the largest cryptocurrency by market capitalization struggles to hold above the $19,000 figure in the short term. At this stage, bitcoin stays in consolidation range, holding between $24,000 and $18,000 over the past few months. The digital currency is clinging to the lower end of the range that could trigger a breakout if the selling pressure continues to abate in the days and weeks to come.