EUR/USD recovers, EUR/JPY surges ahead while GBP/USD grinds higher
Outlook on EUR/USD, EUR/JPY and GBP/USD as the US dollar returns some of its recent gains.
EUR/USD recovers from seven-week low
EUR/USD continues to bounce off its seven-week low, made amid strong non-farm payrolls reading which saw the chances of a March rate cut by the Federal Reserve (Fed) all but disappear and led to a strong rally in the US dollar which has since dissipated.
The cross is gradually rising towards its 1 February low at $1.078 but while it remains below the 200-day simple moving average (SMA) and the December-to-February downtrend line at $1.0832 to $1.085 stays within it medium-term downtrend.
Minor support is seen at Thursday’s $1.0742 low and more significant support at Monday’s $1.0723 low, a slip trough which would engage the $1.0694 late October high.
EUR/JPY surges ahead
EUR/JPY has seen a strong rally on Thursday amid ongoing yen weakness due to the Bank of Japan’s (BoJ) dovish stance with the November-to-February downtrend line at ¥161.19 about to be hit. If bettered, the mid-January high at ¥161.86 would be next in line.
Minor support can be found around the ¥160.27 5 February high.
While the early February low at ¥158.08 holds, the three-month medium-term uptrend remains valid.
GBP/USD grinds higher into end of week
GBP/USD has managed to heave itself back above the 200-day SMA at $1.2563 and is heading towards this week’s high at $1.2642, a rise above which would put the 55-day SMA at $1.2673 on the map. It delineates the middle of the currency pair’s three-months sideways trading range.
Support below Thursday’s low and the 200-day SMA at $1.2572 to $1.2653 can be spotted along the October-to-February uptrend line at $1.2544.
While this week’s low at $1.2519 underpins, the wide sideways trading range should remain intact.
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