EUR/USD, GBP/USD and AUD/USD give back recent gains
Outlook on EUR/USD, GBP/USD and AUD/USD as RBA hikes rates by 25 basis-points to 4.35%.
EUR/USD rally eases
EUR/USD’s strong rally on weaker-than-expected Non-Farm Payrolls on Friday took it to a near two-month high at $1.0756 on Monday before it began to give back some of its gains as US yields bounced back and with these the US dollar strengthened slightly.
The area between the $1.0695 late October high and the 55-day simple moving average (SMA) at $1.0651 is expected to be revisited and may offer support. While it does, medium-term upside pressure should remain in play. If not, the breached July-to-November downtrend line, now because of inverse polarity a support line, at $1.0614 may also offer support.
Were Monday’s high at $1.0756 to be exceeded, the 200-day SMA at $1.0808 would be eyed, together with the $1.0834 July low.
GBP/USD rejected by 200-day simple moving average
GBP/USD’s rally faltered just below the 200-day SMA at $1.2435 and is in the process of slipping through its 55-day SMA at $1.2324 towards the late October high at $1.2288 as UK retail sales rise by 2.6% in October versus a 2.8% gain in September.
Were Monday’s high at $1.2428 to be exceeded, the 11 September high at $1.2548 would be in focus.
AUD/USD comes off near three-month high on rate hike
AUD/USD’s advance to its near three-month high at $0.6523 has been followed by a swift sell-off as the Reserve Bank of Australia (RBA) hiked its rates by 25 basis-points (bps) to 4.35% but market participants expecting it to be the last hike in the cycle.
The 55-day SMA at $0.6398 is thus back in sight ahead of the mid-August low at $0.6365 and the early September low at $0.6358. Minor resistance can be spotted around the $0.6445 mid-October high ahead of major resistance at $0.6511 to $0.6523, the August-to-November highs.
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