EUR/USD, GBP/USD and USD/JPY try to level out ahead of the weekend
Outlook on EUR/USD, GBP/USD and USD/JPY amid strong US growth and high US yields.
EUR/USD levels out despite heightened Middle East tensions
Despite heightened Middle East tensions and stronger-than-expected US growth, EUR/USD managed to bounce off its breached downtrend channel resistance line, now because of inverse polarity a support line, at $1.0522 on Thursday.
While this level holds, the mid-October high at $1.0639 may be revisited. For a medium-term bullish reversal to take shape, a rise and daily chart close above this week’s high at $1.0695 would need to be seen, though.
Below this week’s low at $1.0522 lies the mid-October low at $1.0496 and below it key support at $1.0484 to $1.0444, made up of the mid-November high, 7 December and 6 January lows. It needs to hold for EUR/USD to be able to bottom out.
GBP/USD hovers above its $1.2038 early October low
GBP/USD's slide towards its early-October seven-month low at $1.2038 is showing minor signs of slowing down while Thursday’s low at $1.207 underpins and as profit taking in US dollar longs ahead of the weekend gains traction.
A fall through $1.2038 would put the psychological $1.20 mark on the map, however.
Minor resistance above the mid-October $1.2123 low comes in around the $1.2216 to $1.2225 region which capped the cross a couple of weeks ago. While trading below this resistance area, downside pressure should remain dominant.
USD/JPY cautiously trades above the psychological ¥150.00 mark
Over the past couple of days USD/JPY has been cautiously trading above the psychological ¥150.00 mark, so far without the Bank of Japan (BoJ) intervening despite the early-October high at ¥150.16 having been overcome and a new one-year high being made at ¥150.78.
It lies close to the October 2022 peak at ¥150.94 around which the central bank might well intervene, though.
If so, the July-to-October tentative uptrend line at ¥149.86 would likely give way with this week’s low at ¥149.33 and the next lower 17 October low at ¥148.85 being expected to then be hit.
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