EUR/USD, EUR/GBP sideways trade while USD/JPY continues its ascent
Outlook on EUR/USD, EUR/GBP and USD/JPY amid rapidly falling German producer inflation and a rising greenback.
EUR/USD range trades
EUR/USD’s descent from its 13-month high at $1.1075, caused by an appreciating greenback which recovered from a one-year low amid a US “rates higher for longer” scenario, has so far taken it to this week’s low at $1.0910, above which it has been range trading since the beginning of the week.
A fall through Monday’s $1.091 low would target the $1.0832 to $1.0804 mid-February and 10 April lows which represent significant support.
Minor resistance above Wednesday’s $1.0984 high sits along the minor psychological $1.10 mark with further resistance being spotted at the $1.1033 February peak. Still further up lies last week’s peak at $1.1075, ahead of the January 2022 low and early March 2022 high at $1.1121 to $1.1122.
EUR/GBP oscillates around the 55-day simple moving average
EUR/GBP’s recent failure at its late March high at £0.8865 has taken the cross to this week’s low at £0.8792 before it recovered towards its 55-day simple moving average (SMA) at £0.8827 as German produce inflation slows sharply.
German year-on-year producer inflation slowed by more-than-expected and for a sixth consecutive month to a 22-month low of 7.5% in March versus 15.8% in February and an expected 9.8%.
Above the 55-day SMA lies Wednesday’s high at £0.8838, a rise above which would lead to the late March and current April highs at £0.8864 to £0.8865 being back in the frame.
USD/JPY advance continues
USD/JPY’s rise from its early April low at ¥130.64 has taken the currency pair to its 15 March high at ¥135.11 before stalling.
Above this level and this week’s high at ¥135.14 the 200-day SMA at ¥137.06 and the March peak at ¥137.91 represent the next technical upside targets.
Slips should find support between the late March and 12 April highs at ¥134.05 to ¥133.76 as well as along the 55-day SMA at ¥133.49.
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