The euro still lacks the momentum to challenge 1.00 as traders stay indecisive
The US dollar bounced from the 110.00 zone to finish 0.8% higher on Wednesday. Still, the ISD index lacks recovery momentum to stage a solid bounce at this stage. The greenback has settled around 111.00 since then, struggling for direction amid mixed risk sentiment across the financial markets. Later in the week, the greenback could derive support from the US employment report due on Friday. Should the figures exceed expectations, the dollar may rally across the market. The EURUSD pair failed to regain parity during the recent rally as the 1.00 mark prevented the euro from a more robust ascent. The shared currency has settled around 0.9900 on Thursday, adding nearly 0.3% so far on the day. The pair is unlikely to make a decisive break above the 1.00 handle any time soon, with downside risks persisting for the time being despite the recent bounce.
The cable finished in negative territory on Wednesday after six days of gains. The rally for the pair was capped by the 1.1500 figure, pushing the prices back below 1.1400. Still, GBPUSD managed to hold above the directionless 20-DMA, suggesting the bearish potential is limited at this stage. As such, the cable could stay on the offensive in the near term, especially as the prices hold above the mentioned moving average, currently at 1.1270. GBPUSD was last seen trading around 1.1328, up less than 0.1% on the day. Should the prices fall back below 1.1300, the pair could retest the 1.1000 support zone, followed by the 1.0860 next barrier for USD bulls. On the hourly timeframes, the RSI reversed south, while the price is flirting with the descending 20-SMA, suggesting the GBP could struggle to get back to 1.1500 at this stage.
USDJPY briefly derailed the 20-DMA on Wednesday to jump higher eventually. The pair derived support from the 143.50 zone and bounced back above 144.00, looking directionless today. In general, the dollar continues to hold relatively steady in a tight range after the recent jump in volatility. Last week, the dollar briefly fell to 140.35 before bouncing back above the 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 on Thursday. The pair was last seen changing hands around 144.60, shedding just 0.02% on the day. USDJPY holds steady at the mentioned levels, refraining from another retreat, suggesting the pair could retest multi-year tops in the near term. After some hesitation, USDJPY could climb back to the 145.90 zone to challenge 146.00.
The price of bitcoin surged earlier in the week along with global stocks as investor sentiment improved after the recent sell-off. BTCUSD exceeded the $20,000 figure but is yet to confirm the latest breakout on a daily closing basis as the tone in the cryptocurrency space remains unstable. The coin extended gains towards the $20,400 zone before steadying slightly above $20,000, struggling for direction as risk demand has ebbed somehow. A failure to hold above this level the coming days may push the prices back below the $19,000 figure that could trigger solid losses through the crypto space. On the upside, a decisive break above the $20,500-$20,600 zone would pave the way towards the $20,800 region, followed by the $21,000 mark. The coin was last seen trading around $20,180, adding 0.40% on the day. On the weekly charts, bitcoin holds in positive territory, but looks indecisive anyway.