EUR/USD, EUR/GBP and GBP/USD volatility is on the wane
Outlook on EUR/USD, EUR/GBP and GBP/USD likely to calm down following last week’s volatility.
EUR/USD hovers above support
EUR/USD’s sharp decline from last week’s $1.0929 high amid worries surrounding Deutsche Bank’s double-digit fall in its share price, leading to flight-to-quality flows into the US dollar, pushed the cross to Friday’s low at $1.0714, to marginally below the 55-day simple moving average (SMA) at $1.0736, before closing above it late last week.
On Monday morning the currency pair is trying to remain above the moving average and the March tentative trendline at $1.0742. While this is the case, the mid-February high at $1.0804 may be revisited. Minor resistance above $1.0804 can be spotted between Thursday’s low at $1.0825 and Friday’s intraday high at $1.0837.
Where a drop through Friday’s low at $1.0714 to be seen, however, the early March high at $1.0695 would be eyed.
EUR/GBP’s slide from last week’s £0.8865 high shows no sign of stopping just yet
EUR/GBP’s rally to Thursday’s £0.8865 high has been followed by the last few days descent to Friday’s low at £0.8777 as the euro weakened due to the banking crisis surrounding Germany’s largest bank Deutsch Bank.
A fall through £0.8777 would likely engage the February low at £0.8755.
Resistance can be found at Thursday’s £0.8814 low and also comes in along the 55-day SMA at £0.8834 and at the 15 March high at £0.8843.
GBP/USD hovers below last week’s high at $1.2343
GBP/USD’s advance stalled at Thursday’s $1.2343 high with it dropping to $1.2191
before stabilising.
Provided that this low underpins, the 24 January low and mid-February high at $1.2263 to $1.227 may be revisited, a rise above which would lead to the $1.2343 high seen last week being back in the frame.
Only and advance above Thursday’s high at $1.2343 would push the December and January highs at $1.2446 to $1.2448 to the fore. Below Friday’s low at $1.2191 meanders the 55-day SMA at $1.2154 which may act as support, were it to be revisited.
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