EUR/USD, EUR/GBP slip on euro weakness while AUD/USD rallies post RBA meeting
EUR/USD and EUR/GBP continue to slide on the back of a depreciating euro while the Australian dollar surges higher as the RBA drops the ‘patient’ pledge in its April statement, pointing to future rate hikes.
EUR/USD slips towards $1.0945 late March low
EUR/USD has slipped through its one-month downtrend line at $1.1002 and is heading down towards its late March low at $1.0945 as traders await US ISM non-manufacturing purchasing managers’ index (PMI) for March.
A slip through $1.0945 would engage the mid-March $1.0901 low. Further down sits the $1.0806 early March low.
Strong resistance remains to be seen between the January low and March high at $1.1122 to $1.1185. While the cross stays below this area, this year’s downtrend remains intact.
EUR/GBP’s swift decline weighs on one-month support line
EUR/GBP’s bearish reversal from its £0.8512 late-March high is grappling with the one-month support line at £0.8365, a daily chart close below which would push the £0.8305 to £0.8286 support zone to the fore. It consists of several daily lows made in January, February and on 23 March.
Minor resistance can be spotted between the 16 and 25 of February highs at £0.8402 to £0.8408.
Further up lies the mid-March high at £0.8458 and meanders the 200-day simple moving average (SMA) at £0.8467.
AUD/USD trades in ten-month highs on RBA rate hike expectations
AUD/USD surges higher after the Reserve Bank of Australia (RBA) dropped the ‘patient’ pledge in its April statement, leading investors to believe that the central bank will start to raise rates at its next meeting, having kept these at their record low of 0.1% for the 16th month in a row in today’s meeting.
The cross is trading at levels last seen in June 2021 and targets that month’s high at $0.7775, as well as the January 2021 peak at $0.782.
Previous resistance at $0.7564 to $0.7532, consisting of the January and March 2021 lows and October 2021 high, should now act as support, if revisited at all.
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