EUR/USD steady, while GBP/USD and USD/CAD rise
Inflation figures have pushed sterling higher this morning, while USD/CAD has returned to the 200-day SMA.
EUR/USD little-changed in early trading
EUR/USD rebounded on Tuesday, maintaining the uptrend for the time being.
After a steady stair-step move higher over the past three weeks, the index still looks on course to move above $1.10 again, and then on towards the $1.12 level.
A more serious move lower would require a drop back below the 50-day simple moving average (SMA), indicating that the March lows around $1.05 may be tested.
GBP/USD bolstered by inflation news
Stronger wage data on Tuesday supported GBP/USD and allowed it to consolidate after falling back from $1.25, and inflation numbers this morning have provided further impetus.
The overall upward move continues, and last May’s highs at $1.266 become the next target as the pound continues to appreciate against the US dollar. Dips remain buying opportunities for the time being.
A move back below $1.22 would be needed to suggest that a more neutral view prevails.
USD/CAD returns to the 200-day SMA
A push back to the 200-day SMA means that the longer-term move higher may not be entirely finished with USD/CAD. The price has stabilised after its steep drop from the March highs, and a move back above the 200-day SMA and the C$1.34 level could point towards a renewed bounce, particularly if accompanied by a bullish moving average convergence divergence (MACD) crossover.
This might then suggest that a move back towards C$1.356 is in the offing, and potentially back towards C$1.38 over time.
A move back below C$1.33 would negate this view and bring the November 2022 and February 2023 lows around C$1.326 into view as support again.
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