EUR/USD, GBP/USD and USD/JPY stabilize ahead of this week’s US CPI release
Outlook on EUR/USD, GBP/USD and USD/JPY ahead of China, Japan and US inflation readings.
EUR/USD tries to stabilize
EUR/USD's bullish reversal off last week’s low at $1.0877 post US nonfarm payrolls, which came in stronger-than-expected but which also saw downward revisions in eleven of the last twelve months, fizzled out at Friday’s $1.0998 high.
A sparse economic calendar on Monday points towards range trading taking place on Monday. Immediate resistance can be seen along the December-to-January resistance line at $1.0974 ahead of Friday’s $1.0998 peak.
Minor support lies at Thursday’s $1.0916 low ahead of last week’s $1.0894 to $1.0877 lows.
GBP/USD recovers from last week’s low
GBP/USD's bullish reversal from its two-week low at $1.2611, seen last week amid the publication of US nonfarm payrolls, took it to Friday’s high at $1.2771 before the cross slipped back ahead of this week’s US inflation data release on Thursday.
Wednesday’s high at $1.2676 may well be revisited, below which lie the November-to-January uptrend line, 21 December and current January lows at $1.2622 to $1.2611 which should offer good support.
A rise above Monday’s $1.273 high is needed, for the November peak at $1.2733 and Friday’s high at $1.2771 to be retested. Further up the mid-December high can be found at $1.2794 and the December five-month peak at $1.2828.
USD/JPY consolidates below last week’s one-month high
The swift rally in the USD/JPY pair amid pared back US rate cut expectations pushed it to last week’s ¥145.98 high below which the cross is now consolidating.
Support below Friday’s ¥143.81 low can be seen along the 200-day simple moving average (SMA) at ¥143.32 whereas minor resistance above Thursday’s ¥144.85 high is needed to revisit Friday’s ¥145.98 one-month high.
Further up meanders the 55-day SMA at ¥146.80.
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