EUR/USD, GBP/USD and EUR/GBP await US CPI report
Outlook on EUR/USD, EUR/GBP and GBP/USD ahead of US inflation report.
EUR/USD loses upside momentum ahead of US inflation report
EUR/USD over 2% rally from last week’s $1.0484 low is losing upside momentum as market players await US Consumer Price Inflation (CPI).
The May 2022 peak at $1.0787 may nonetheless be reached before US inflation data is released. Above this level lies the March 2022 low at $1.0806 ahead of the 50% retracement of the 2021 to 2022 decline at $1.094 and the psychological $1.10 mark.
Minor support is to be found between the mid- to late-December highs at $1.0736 to $1.0715 and further down below Friday’s $1.0648 high between the $1.0595 early December-high and the $1.0574 19 December trough.
EUR/GBP flirts with its October and December peaks
On Wednesday EUR/GBP briefly overcame its October to late December as well as early January highs at £0.8867 to £0.8877 by rising to $0.8881 before short-term consolidating.
A daily chart close above Wednesday’s high at £0.8881 would put the minor psychological £0.90 region on the plate.
While the December-to-January support line at £0.88 isn’t slipped through, the cross remains supported. Slightly below it lies the £0.8783 early January low.
GBP/USD trades in low volatility sideways trading range ahead of US inflation data release
GBP/USD has been trading in an around 100 pips range since the beginning of the week below Monday’s $1.221 high as market participants await US inflation data out later today.
Should the currency pair manage to rise above $1.2210, the early December high at $1.2344 would be targeted ahead of the December peak at $1.2446.
Strong support can be seen between the 200- and 55-day simple moving averages (SMA) and the September-to-December uptrend lines at $1.2002 to $1.1918. While the next lower $1.1841 early January low underpins, further upside is likely to be in store.
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