EUR/USD and GBP/USD slip while EUR/GBP stabilises amid higher-than-expected UK unemployment reading
Outlook on EUR/USD, EUR/GBP and GBP/USD post 3.9% March UK unemployment report.
EUR/USD remains under pressure ahead of German ZEW survey
EUR/USD'S two-week descent revisits the 55-day simple moving average (SMA) at $1.086 ahead of Tuesday’s German ZEW Economic Sentiment data release which may lead to a fall through its one-month $1.0848 low.
In this case the 10 April low at $1.0832 would be eyed, followed by the mid-February high at $1.0804. Further potential support sits around the early April low at $1.0789 while resistance can be spotted between the 23 March high and 2 May low at $1.0929 to $1.0943.
While this resistance zone caps, downside pressure is expected to dominate.
EUR/GBP holds as UK unemployment rises to 3.9%
EUR/GBP's slide to levels last traded in December of last year has been followed by another minor recovery rally as March UK unemployment data came in worse than expected at 3.9% (versus 3.8% in the previous month) and average earnings at an unchanged 5.8% as forecast.
The cross is once again trying to head back up towards its 200-day SMA at £0.8742 which last week acted as resistance and may do so again.
Above it the late February low at £0.8755 may also stall an attempt of a move higher taking place, together with the early May low at £0.876. A slip through Monday’s low at $0.8678 may lead to last week’s 2023 low at £0.8662 being revisited but this scenario currently looks less probable than a continued rise, at least over the next few days.
GBP/USD resumes its descent as UK unemployment data exceeds forecasts
GBP/USD's recovery rally from Friday’s $1.2445 low stalled at $1.2534 on Monday before resuming its descent on a higher March reading for UK unemployment at 3.9%.
A fall through last week’s $1.2445 low would put the $1.2387 to $1.2345 zone on the map. It consists of the mid- to late April lows and should offer good support. Support below this area lies at the mid-February high and early April low at $1.2275 to $1.227.
Only a currently unexpected bullish reversal, rise and daily chart close above Monday’s $1.2534 high could lead to the mid-April high at $1.2546 being retested, above which the late April peak can be spotted at $1.2584.
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