The euro is unlikely to make a decisive break above the 1.00 handle any time soon
The US dollar keeps climbing north, retaining bullish bias for the fourth session in a row on Monday. The USD index regained recovery momentum after the recent downside correction. The greenback has settled marginally below 113.00 at the start of the week, adding less than 0.1%. Later in the week, the greenback could derive support from the US CPI report due on Thursday. Should the figures exceed expectations, the dollar may rally across the market. The EURUSD pair failed to regain parity during the latest rally as the 1.00 mark prevented the euro from a more robust ascent. The shared currency has settled below 0.9800 on Monday, unchanged 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, especially as the prices are back below the descending 20-DMA.
The cable finished the week with mild losses, staying on the defensive on Monday. Earlier, the rally for the pair was capped by the 1.1500 figure, pushing the prices back below 1.1100. In the process, GBPUSD dipped back below the descending 20-DMA, suggesting the bearish potential persists at this stage. As such, the cable could stay on the defensive in the near term, especially as the prices hold below the mentioned moving average, currently at 1.1205. GBPUSD was last seen flirting with the 1.1100 figure, entering positive territory on the daily charts. Should the prices fail to regain this level any time soon, 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 north, while the price is flirting with the descending 20-SMA, suggesting the GBP could make some recovery attempts in the immediate term.
USDJPY briefly derailed the 20-DMA last week to regain the upside momentum that has been persisting for the fourth session in a row already. The pair derived support from the 143.50 zone and bounced back above 145.00, adding less than 0.1% on the day. In general, the dollar continues to hold steady after the recent jump. The USD extends its ascent from last week’s highs, now targeting multi-week highs seen last month just below the 146.00 figure. The pair was last seen changing hands around 145.34, adding 0.01% 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 BTCUSD pair closed around $19,400 last week, staying directionless on Monday, with most digital currencies stuck in tight trading ranges these days. In the near term, the most popular digital currency is likely to stay on the defensive. Now, the coin needs a so-called relief rally in order to regain $20,000. However, the digital currency is unlikely to reclaim this psychologically important level on a sustained basis aby time soon as the overall backdrop in the global markets implies that riskier assets could stay under pressure for the time being. On the downside, a failure to hold above $19,200 would pave the way towards the $19,000 mark, followed by the $18,950-$18,850 intermediate support zone that may cap the selling pressure on the way towards $18,500. In the immediate term, BTC needs to hold above $19,400 in order to stay afloat.