Quiet day ahead for EUR/USD, EUR/GBP and EUR/JPY as US celebrates 4 July
Outlook on EUR/USD, EUR/GBP and EUR/JPY while the US is celebrating its 4 July holiday.
EUR/USD expected to trade in small range due to US 4 July holiday
EUR/USD continues to range trade above its recent lows at $1.0845 to $1.0835 as the US is shut for its 4 July holiday and trading volumes are expected to be greatly diminished.
EUR/USD remains above its the 55-day simple moving average (SMA) at $1.088 around which it found support on Monday. Below it lies stronger support at $1.0845 to $1.0835, the recent lows, only a fall through which would engage the $1.0789 April low.
Minor resistance above Friday and Monday’s highs at $1.0931 to $1.0933 can be spotted at last Thursday’s $1.0941 high.
EUR/GBP trades in little volatility
EUR/GBP is seen trading in low volatility, having last week come off its £0.8658 one-month high to Friday’s low at £0.8577. This level may again act as support on Tuesday.
If not, the early-June low at £0.8568 is likely to be revisited. Below it further minor support can be found at the £0.8542 mid-June trough.
Only a rise above Monday’s high at £0.8605 could lead to the resumption of the mid-June-to-early-July advance with the mid-June high at £0.8613 then being back in the frame.
EUR/JPY ascent stalls below ¥158.00 as threat of intervention looms
EUR/JPY's rise has so far stalled at its late June high at ¥158.00 as traders are increasingly concerned about potential currency intervention by the Bank of Japan (BoJ) which would push the cross back down again.
This follows the Japanese Ministry of Finance recently mentioning the Japanese Yen weakness, saying that they were watching currency moves with a 'sense of urgency'.
A rise above last week’s ¥158.00 high would push the February 2007 peak at ¥159.65 and also the minor psychological ¥160.00 mark to the fore. Support below the 22 June high at ¥156.93 is to be found at last week’s low at ¥156.69, below which lies the 19 June high at ¥155.26.
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