GBP/USD and AUD/USD slip towards support and USD/JPY rallies on appreciating greenback
Outlook on GBP/USD, USD/JPY and AUD/USD amid ongoing US debt ceiling negotiations.
GBP/USD slips towards support amid ongoing US debt ceiling negotiations
GBP/USD’s two-week descent is once more approaching the $1.2387 to $1.2345 mid- to late-April lows and 55-day simple moving average (SMA) which this week should offer support.
Support below $1.2345 lies at the mid-February high and early-April low at $1.2275 to $1.227. Any minor bounce is likely to encounter resistance in the $1.25 region.
Only a currently unexpected bullish reversal, rise and daily chart close above last Wednesday’s $1.2546 high would put the late-April high at $1.2584 back on the cards.
USD/JPY hits a new six-month high
USD/JPY’s rally to six-month highs continues with the cross having so far risen to ¥138.87. Further up beckons the late-November high at ¥139.89 as long as the 200-day SMA at ¥137.14 underpins.
Above it minor support can be spotted along the two-week support line at ¥138.00 as well as between the March and early-May highs at ¥137.91 to ¥137.77.
If slid through, the ¥135.13 to ¥134.77 early-January, mid-March and mid-April highs may be revisited, though.
AUD/USD slips back towards March and April lows
Last week, AUD/USD dropped back below its 55-day SMA at $0.6681. Today it is sliding towards last week’s low at $0.6605. Failure there would engage the March and April lows at $0.6574 to $0.6565 which are expected to offer good initial support.
Only a currently unlikely bullish reversal to above Friday’s high and the 55-day SMA at $0.6675 to $0.6681 could offer short-term respite to the bulls. In this case the 200-day SMA at $0.6711 may be reached but may well cap again.
If overcome on a daily chart closing basis, however, the April high at $0.6806 could be retested.
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