EUR/USD and GBP/USD stall while USD/JPY finds support on USD strength
Outlook on EUR/USD, GBP/USD and USD/JPY as the greenback slightly appreciates ahead of the Easter weekend.
EUR/USD’s advance stalls below current April high at $1.0973
EURUSD's rise from Monday’s $1.0789 low ran out of steam at $1.0973 earlier this week and was followed by a slight retracement lower amid softening US data and better-than-expected German factory orders and French industrial production.
The cross nonetheless remains within its March-to-April uptrend channel, the lower line of which comes in at $1.085 and may act as support, if revisited. The March high at $1.0929 high may be retested on Thursday, ahead of the prolonged Easter weekend, a rise above which would allow for this week’s high at $1.0973 to be reached, above which lurks the $1.1033 February peak.
Support below the uptrend channel line at $1.085 sits between the 27 March high at $1.0801 and Monday’s low at $1.0789. While the latter holds, the medium-term uptrend should remain intact.
GBP/USD consolidates above key resistance at $1.2446 to $1.2448
GBP/USD remains above its December and January highs at $1.2448 to $1.2446, having earlier this week risen to $1.2525 on a weakening US dollar amid softer US data pointing to a possible recession.
Support below $1.2446 sits at the $1.2401 early February high and comes in along the March-to-April uptrend line at $1.2353.
A rise above the current April high at $1.2525 would engage the May 2022 peak at $1.2667.
USD/JPY find support ahead of US Non-Farm Payrolls
USDJPY's slip from last week’s high at ¥133.75 has taken it back down to ¥130.63, to not far above this year’s uptrend line at ¥130.08 and the ¥129.65 March low which remain in focus while no rise above the ¥133.75 high is taking place.
The currency pair is expected to continue its descent as the greenback depreciates on the back of softening US data which points towards a possible recession in the US rearing its head later this year.
Minor resistance below this week’s ¥133.75 high comes in between the March-to-April resistance line and the 55-day simple moving average (SMA) at ¥132.76 and ¥133.05.
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