EUR/USD and USD/JPY consolidate while EUR/GBP advances
Outlook on EUR/USD, EUR/GBP and USD/JPY as China vows to stick to Covid Zero policy.
EUR/USD nears parity
Friday’s EUR/USD surge higher is taking a breather below parity despite September German Industrial Production coming in at a better than expected 0.6% month-on-month (MoM) rise versus -0.8% in August.
EUR/USD short term consolidates below last week’s $0.9976 high and may slip back towards the 55-day simple moving average (SMA) at $0.9887 before having another go at reaching parity above which lurks the late-October peak at $1.0093.
Minor support below the 55-day SMA can be spotted at the $0.9865 early-September low as well as Thursday’s $0.9839 high.
EUR/GBP continues its advance towards its £0.8867 October peak
EUR/GBP is on track to reach its £0.878 21 October high as the Euro continues to appreciate and as the UK October Halifax House Price Index comes in as expected at -0.4% MoM versus -0.1% in September, its second consecutive monthly slide.
Above £0.878, the 26 and 28 September lows can be found at £0.8853 as well as the October peak at £0.8867.
Minor support below Thursday’s £0.8743 high comes in along the 55-day SMA at £0.8695. Below it lies the early-October low at £0.8649.
USD/JPY rises as China vows to stick to its strict Covid Zero policy
USD/JPY regains some of Friday’s losses amid comments by Chinese officials over the weekend denying that the country was considering easing its strict zero-Covid 19 measures.
A recovery from Friday’s ¥146.56 low, made marginally above its August-to-November uptrend line at ¥146.56, is currently underway with the October-to-November resistance line at ¥148.02 being in focus. Above it lie last week’s highs at ¥148.45 to ¥148.85.
A currently unexpected slip through the three-month uptrend line at ¥146.56 would engage the early-November low at ¥145.68 below which sits the late October through at ¥145.12.
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