EUR/USD stays bid while EUR/GBP stabilizes and USD/CNH remains under pressure
Outlook on EUR/USD, EUR/GBP and USD/CNH amid a plethora of European manufacturing and services PMIs and as China’s government aids its property sector.
EUR/USD is seen heading back up towards its four-month high
EUR/USD is once again heading back up towards the $1.0945 late August-high, having this week come off its four-month high at $1.0965 and slipped to $1.0853 on Wednesday.
Slightly weaker-than-expected French manufacturing and services purchasing managers indexes (PMIs) but better-than-expected Eurozone and German ones lifted the Euro versus the greenback in low volume trading due to the Thanksgiving holiday in the US.
A rise above $1.0945 would engage this week’s $1.0965 high, above which lie the late June-high at $1.1012 and the August $1.1065 peak. Minor support below last Tuesday’s $1.0887 high and Wednesday’s low at $1.0853 comes in around the $1.0834 July low and the 200-day simple moving average (SMA) at $1.0811.
EUR/GBP tries to level out
In the course of this week EUR/GBP has swiftly come off its six-month high at £0.8766 amid the UK’s autumn statement and slid to £0.8693 earlier today before recovering amid Eurozone and UK manufacturing and services PMIs.
The cross found support slightly above the August-to-November uptrend line at £0.8688 and the 200-day SMA at £0.8683.
A rise above Wednesday’s high at £0.8725 could push the 20 October high at £0.874 to the fore ahead of key resistance which sits between the October and current November-highs at £0.8754 to £0.8766.
USD/CNH weighs on support
USD/CNH’s decline from its CN¥7.3681 one-year high, amid a depreciating greenback and as China’s government once more tries to shore up its battered property sector, has taken the cross to the 200-day SMA at CN¥7.1325 which offered support throughout this week.
Were it and this week’s low at CN¥7.1286 to be slipped through, the mid-June and July lows at CN¥7.1160 to CN¥7.1041 may offer support.
Immediate downside pressure will remain dominant as long as Wednesday’s high at CN¥7.1757 isn’t bettered on a daily chart closing basis.
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