The shared currency is holding around 1.0100 amid dollar’s recovery attempts
The US dollar resumed the decline on Monday to find support around the 110.00 figure. The greenback bounced slightly today, but the recovery momentum looks limited after a strong rejection from the 113.00 zone on Friday when the bulls were spooked by weaker wages and unemployment data. As such, EURUSD rallied back above the key moving averages to briefly exceed parity. The shared currency is holding around 1.0100 amid dollar’s recovery attempts on Tuesday. However, the upside stays limited as traders were spooked by the descending 100-DMA during the recent rally. The EURUSD pair was last seen changing hands around 0.9997, down 0.21% on the day. Should the upcoming US inflation report come in stronger than expected, the euro may lose its modest recovery momentum to finish the week on a downbeat note as the greenback could resume the ascent across the market.
The pound rallied on Monday to extend the ascent from late last week. The cable found support below the 20-DMA, near two-week lows around 1.1150. GBPUSD has bounced since then, to settle slightly below 1.1500 in early European deals on Tuesday. The pair is unlikely to see a more decisive bounce at this stage even as the dollar retreats across the board. In the immediate tern, traders will continue to digest the recession warning from the Bank of England, suggesting the pound could stay depressed for a while. Now, GBPUSD needs to regain the 100-day moving average, today at 1.1680, in order to see a more significant rebound. On the positive side, the daily RSI stays afloat in neutral territory, suggesting the cable could at least refrain from a deeper retreat in the near term. GBPUSD was last seen changing hands around 1.1485, down 0.20% on the day.
The USDJPY has settled below the ascending 20-DMA after a failure to regain the 149.00 level at the start of last week. The greenback stays mostly on the defensive since then, albeit refraining from a major retreat. The pair has settled below the 20-day moving average, today at 147.90, with the near-term technical picture deteriorating somehow. At the same time, a broader uptrend stays intact while above the 125.00 zone last seen in April. As a reminder, USDJPY notched fresh multi-year highs around 152.00 in October to finish the third consecutive month with solid gains. In the immediate term, the greenback needs to regain the 20-DMA in order to avoid a deeper retreat. Otherwise, the pair is likely to suffer fresh losses, with the 145.00 support zone coming into the market focus at this stage. The USD was last seen trading around 146.70, unchanged on the day.
BTCUSD came under aggressive selling pressure, continuing to lose ground since the weekend. On Tuesday, the coin slipped to two-week lows around $19,400, losing more than 5% on the day. In the process, the digital currency derailed the $20,000 mark for the first time since October 25, adding to a more downbeat technical picture. In the near term, bitcoin could stay on the defensive while holding below the $20,000 figure. The coin has bounced from recent lows to trim intraday losses, but the market needs a more sustained recovery in order to get back above the psychological level on a daily closing basis. The immediate support now arrives around $19,400, followed by $19,000 and the $18,700 zone that capped the downside momentum on October 21. In a wider picture, the coin remains in consolidative mode, with volatility ebbing since September.