EUR/USD pauses while GBP/USD and AUD/NZD rise further ahead of final US Q4 GDP data
Outlook on EUR/USD, GBP/USD and AUD/NZD as risk-on sentiment comes back to the fore.
EUR/USD’s advance stalls ahead of final US GDP data release
EUR/USD’s advance from last week’s $1.0714 low is losing upside momentum on its way up towards the current March high at $1.0929 high ahead of Thursday’s final quarter US gross domestic product (GDP) data release.
The cross is being supported by the two-week uptrend line at $1.083 and the $1.0804 to $1.0801 mid-February and Monday’s highs. While the latter level holds, immediate upside pressure should be maintained. A rise above Wednesday’s high at $1.0871 is needed, though, for the bulls to be back in control. Minor support below Monday’s $1.0801 high can be seen at the mid-March high at $1.076 ahead of the 55-day simple moving average (SMA) at $1.074.
GBP/USD is seen heading back up to Wednesday’s $1.2361 high
GBP/USD has resumed its ascent towards Wednesday’s $1.2361 high, having briefly dipped down to $1.2294 ahead of Thursday’s final Q4 GDP announcement. A rise above this week’s high at $1.2361 would probably open the way for the December and January highs at $1.2446 to $1.2448 to be reached next. These levels represent strong resistance, though.
Support below Thursday morning’s $1.2294 low and Friday’s $1.2288 high can be found between the 24 January low and mid-February high at $1.2270 to $1.2263. Only a currently unexpected bearish reversal to below Friday’s low at $1.2191 would void our short-term bullish outlook and put the 55-day SMA at $1.2164 back on the map.
AUD/NZD once more holds at support
AUD/NZD on Wednesday, once again, managed to stabilise above its current March low at $1.0675 before forming a bullish ‘Hammer’ on the daily candlestick chart.
Therefore, while the cross remains above Wednesday’s $1.0687 low, short-term upside could take it back towards last week’s high at $1.0804. In case of a sudden bearish reversal taking the currency pair to below the recent $1.0687 to $1.0675 lows on a daily chart closing basis, the late December trough at $1.0624 would be in focus.
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