AUD/USD bounce falters and EUR/JPY slumps further, but EUR/GBP rallies ahead of BoE meeting
The euro remains under heavy pressure against the yen, but is making headway against sterling ahead of the UK rate decision today. Meanwhile yesterday’s bounce in AUD/USD has run out steam.
AUD/USD bounce runs out of steam
AUD/USD continues to head lower despite a rebound from yesterday’s three-month low. Yesterday’s recovery has fizzled out, and a push back to the lows of Wednesday’s session seems likely. This would maintain the bearish view.
A close back above $0.657 would mark a low for the time being, and then the price will test the 200-day simple moving average (SMA).
EUR/GBP rebounds
EUR/GBP has found new bullish momentum, rallying back towards the 50-day SMA and Monday’s peak.
The downtrend is still in place, so any bounce would still likely form a lower high for the time being. However, a medium-goal for further upside would be the late June highs at £0.849 and the early June gap lower.
EUR/JPY slumps to new four-month low
EUR/JPY huge pullback continues, with the price closing below the 200-day SMA for the first time since March 2023.
The uptrend has taken a huge knock, and with the Bank of Japan (BoJ) now likely to tighten further more losses seem likely. The Mach 2024 low at ¥160.00 looms. So far there is little sign of any rebound beginning.
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