EUR/USD slips, AUD/USD tries to hold steady while USD/CNH rallies
Outlook on EUR/USD, AUD/USD and USD/CNH as greenback continues to surge higher.
EUR/USD slips to a 3-month low
EUR/USD’s descent is ongoing as the US services sector rises the most in six months and propels the greenback higher while the eurozone is seeing deflation.
A drop through Wednesday’s $1.0703 low will bring the May low at $1.0636 into the frame.
Minor resistance remains to be seen around the $1.0766 August low and along the 200-day simple moving average (SMA) at $1.0824 as well as at the July low at $1.0834.
AUD/USD tries to hold steady amid smallest trade surplus in 17 months
AUD/USD tries to hold above its ten-month August low at $0.6365 and this week’s low at $0.6358 as Australia sees its smallest trade surplus in 17 months.
The positive divergence seen on the daily chart in regards to the Relative Strength Index (RSI) may lead to a minor bounce but first another dip lower may ensue. Below $0.6358 lies the mid-October high at $0.6348, a drop through which would point to the November low at $0.6273.
Minor resistance sits at Friday’s $0.6439 low. While the next higher $0.6522 late August high isn’t overcome, the medium-term downtrend remains valid.
USD/CNH rallies as China posts smallest trade surplus in 3 months
USD/CNH has been rallying off its two-week August low at CN¥7.2392 over three consecutive days with it looking to add a fourth day of gains as China posts its smallest trade surplus in three months.
The August peak at CH¥7.3497 is back within reach ahead of the October 2022 peak at CN¥7.3773. Potential slips should find support around the late August high at CN¥7.3106.
Technically speaking the cross remains in a medium-term uptrend as long as it stays above its CN¥7.2392 early September low.
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