EUR/USD, GBP/USD fall to multi-months lows while USD/CNH rallies to 11-month high
Outlook on EUR/USD, GBP/USD and USD/CNH as the US dollar is on track for its eights weekly gain, the longest winning streak since 2014.
EUR/USD trades in new 3-month low
EUR/USD's descent continues as the greenback is on track for its longest weekly winning streak since 2014 amid rising US rate expectations.
A drop through Thursday’s $1.0687 low would eye the May low at $1.0636.
Minor resistance remains to be seen around the $1.0766 August low and along the 200-day simple moving average (SMA) at $1.0825 as well as at the July low at $1.0834.
GBP/USD drops towards 200-day SMA
GBP/USD's descent has so far taken it to this week’s $1.2446 3-month low amid dovish comments by the governor of the Bank of England (BoE) Andrew Bailey who said that further rate hikes may no longer be needed.
Below Thursday’s low at $1.2446 meanders the 200-day SMA at $1.2428 which is expected to be reached in the near future but may offer support. If not, the June trough at $1.2369 would be in focus.
Resistance can be spotted at the $1.2549 late August low and also at the $1.2591 June low. While next higher resistance at $1.2819 isn’t bettered, the medium-term trend remains bearish.
USD/CNH rallies to 11-month high
USD/CNH has been rallying off its two-week August low at CN¥7.2392 over five consecutive days and now trades in 11-month highs as the US dollar heads towards its eights weekly advance.
The October 2022 peak at CN¥7.3773 is thus in sight. Minor support below the CN¥7.3497 August high can be made out at the late August high at CN¥7.3106.
The currency pair remains in a medium-term uptrend while it trades above its CN¥7.2392 early September low.
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