AUD/USD and EUR/JPY move higher, but EUR/GBP falls back again
Both AUD/USD and EUR/JPY are recovering after recent heavy losses, while EUR/GBP’s attempt to rally has been knocked back.
AUD/USD losses halted
AUD/USD has formed a low for the time being, after slumping to a three-month trough last week.
Steady gains over the last two days provide the view that a low is being formed, and that a rebound towards the 200-day simple moving average (SMA) is now underway, also targeting the $0.66 zone once more.
A reversal back below $0.6515 would put the price on course to erase more of the gains made since late April
EUR/GBP knocked back from 50-day MA
After rallying over the past two weeks EUR/USD was firmly thrown back from the 50-day SMA.
This leaves it back below trendline resistance from the May highs, and might now see a new test of the July lows. Much will depend on the Bank of England meeting this week.
Trendline resistance from the May highs and then the 50-day SMA remain the key targets in any renewed short-term recovery.
EUR/JPY forms a higher low
The uptrend with EUR/JPY took a knock over the past three weeks, but having been overextended to the upside in early July, it may now push higher once again.
The longer-term trend is still in place, with the drop below ¥166.00 having found buyers. A push to the 100-day SMA on Friday was knocked back, but overall the price looks like it is forming a higher low.
The price needs to clear the ¥167.70 area in order to make further gains, while a renewed short-term bearish view needs a close back below ¥165.00.
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