EUR/USD little changed while EUR/GBP slips and AUD/USD probes downtrend
EUR/USD holds despite Russia reducing gas supply, EUR/GBP slides and AUD/USD tries to break through its April-to-July downtrend line.
EUR/USD holds despite Russia cutting Nord Stream 1 gas supply to 20%
EUR/USD continues to oscillate around the $1.02 mark as Russia tightened its gas squeeze on Europe on Monday by reducing the supply of the Nord Stream 1 pipeline to 20% and as traders await the Federal Reserve’s (Fed) Federal Open Market Committee (FOMC) meeting on Wednesday which is to shed more light on its tightening path.
Support can be seen between the mid-August high and Friday’s low at $1.013 to $1.0122 and resistance at last week’s $1.0278 high. More significant resistance can be found in the $1.034 to $1.036 zone which consists of the December 2016 and January 2017 as well as the May and June 2022 lows.
Were a renewed descent to take the cross below $1.0122, parity would be back in focus. Below it the current July trough lies at $0.9952. Failure there would engage the $0.9698 to $0.9593 support area which is comprised of the June 2000 and February 2001 highs and the September 2002 low.
EUR/GBP continues to slide
EUR/GBP continues to come off last week’s high at £0.8584 as Russia reduced the supply of the Nord Stream 1 pipeline to 20% on Monday and German recession fears increased as German business confidence has fallen to a two-year low.
Below Friday’s low at £0.8486 the 18 July low can be spotted at £0.8458 and the 200-day simple moving average (SMA) at £0.8445 which is likely to act as support, if retested.
Minor resistance now sits at the 15 July high at £0.8513 and along the 55-day SMA at £0.8533 as well as between the 24 and 30 June lows at £0.8551 to £0.8561. Further up sit the late May and early June highs as well as last week’s high at £0.8584 to £0.8592.
AUD/USD tries to break through its downtrend line
AUD/USD’s rally from its $0.6682 mid-July low has twice taken it to its April-to-July downtrend line, once last week and again earlier on Tuesday, on the back of rising oil prices.
A daily chart close above Tuesday’s intraday high at $0.6983 is needed, for a trendline break to be validated and for the mid-June high at $0.7069 to be back in the frame.
While the downtrend line caps, however, a risk remains of a slip back towards the two-week support line at $0.6906 to be revisited.
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