The broader uptrend remains intact, and the buying pressure could reemerge as risk demand remains fragile
The safe-haven greenback derailed the 110.00 mark to find support around 109.55 earlier on Thursday before steadying in recent trading. The USD index bounced to the 109.85 zone, targeting 110.00 after refreshing October lows. At that, the broader uptrend remains intact, and the buying pressure could reemerge as risk demand remains fragile at this stage. On the upside, the immediate resistance now arrives around 110.00, followed by the 110.50 zone and the 111.00 mark. EURUSD rallied above the 20-DMA and parity to climb to mid-September highs just below 1.0100 before turning slightly negative in recent trading as traders take some profit ahead of the ECB decision. On the four-hour charts, the technical picture looks mixed as the pair stays well above the key moving averages while the RSI is pointing lower in overbought territory, suggesting the bullish momentum is waning already.
The pound jumped above 1.1600 on Wednesday in a broad-based risk-on rally. However, the pair has retreated since then as some dollar demand reemerged. The cable came under moderate pressure on Thursday to settle below 1.1600 amid the persisting political uncertainty in the UK. On the positive side, the cable holds well above the 20-DMA, today at 1.1276. The pair was last seen changing hands around 1.1590, down 0.28% on the day. Now, GBPUSD needs to regain the 1.1600 zone on a daily closing basis in order to stay afloat in the immediate term. Earlier in October, the rally for the pair was capped by the 1.1500 figure, pushing the prices back below 1.1000. Now, the 100-DMA, today at 1.1740, comes into the market focus. However, the cable could lack the momentum to challenge this moving average in the near term.
The USDJPY pair has been sliding for the third session in a row on Thursday as the overall demand for the US dollar stays muted. The pair extended losses to 145.10 before bouncing slightly in recent trading. The dollar was last seen trading around 145.75, down 0.40% on the day. The selling pressure intensified after a failure to hold above the 20-DMA, today at 146.90. Should the greenback struggle to regain this moving average in the near term, the pair is likely to suffer even deeper losses, with the 145.00 support zone in the market focus at this stage. On the upside, the immediate resistance now arrives at 146.50, followed by the 20-DMA, and the 147.90 zone. On the four-hour timeframes, the RSI points south, while the prices hold below the key moving averages, suggesting the overall technical picture could stay bearish in the immediate term.
The price of bitcoin surged 3.4% on Wednesday to derail the $21,000 psychological level for the first time since mid-September. The BTCUSD pair briefly rallied to $21,011 before finishing slightly below $20,000. The coin failed to retain a bullish bias on Thursday, albeit refraining from a deeper retreat ascent at this stage. One of the main reasons behind the recent rally in the crypto space is the overall upbeat investor sentiment in the traditional financial markets. Bitcoin and its counterparts were also buoyed by institutional investors that have been increasing their holding in BTC. Now, bitcoin needs to preserve the upside momentum to see further gains in the near term. Should the coin manage to stay above $20,000, traders will retarget the $21,000 resistance zone. The immediate support area is now around $20,600, followed $20,400.