EUR/USD and EUR/GBP rise on hawkish ECB comments while AUD/USD slips
Outlook on EUR/USD, EUR/GBP amid hawkish ECB comments and AUD/USD amid weaker gold price.
EUR/USD’s advance falters slightly below $1.1075 mid-April high
EUR/USD’s rally, on hawkish comments from European Central Bank (ECB) council members on Monday calling for a 50 basis-point (bp) rate hike at the next committee meeting, petered out slightly below the mid-April high at $1.1075. While this level caps, a slid back towards the psychological $1.10 mark may ensue.
Having said that, while the March-to-April uptrend line at $1.0969 underpins, further upside is expected to be seen which could take the cross to the January 2022 low and early March 2022 high at $1.1121 to $1.1122.
Support below the uptrend line can be spotted at the $1.0929 late March high and also at last week’s low at $1.091.
Hawkish ECB comments help EUR/GBP advance
EUR/GBP is seen heading back up towards its late March and mid-April highs around £0.8865 on hawkish ECB comments and a slightly better-than-expected German Ifo business climate which came in at 93.6 in April versus and expected 93.4 and 93.3 in March on Monday.
Immediate support sits at the 19 April high at £0.8838 with further support seen along the 55-day simple moving average (SMA) at £0.8823.
Were the £0.8865 late March high to be exceeded, the early March high at £0.8896 would be in focus, followed by the £0.8925 March peak.
AUD/USD nears October-to-April uptrend line at $0.6658
AUD/USD resumed its descent as the greenback regained lost ground and the price of gold remained under pressure last week with the cross approaching its October-to-April uptrend line at $0.6658.
If slipped through, the late March low at $0.6626 and then the early April trough at $0.662 would be targeted, a fall through which would open the way for the March low at $0.6565 to be revisited.
Resistance remains to be seen along the 55- and 200-day SMA at $0.6737 to $0.6742.
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