EUR/GBP and EUR/JPY both move higher, as AUD/USD stabilises after recent losses
Euro strength has seen EUR/GBP and EUR/JPY push higher, the latter to levels not seen since before the Global Financial Crisis. Meanwhile, losses in AUD/USD have been stemmed for now.
EUR/GBP makes further headway
EUR/GBP gains continue, with the price moving back above £0.86 and putting itself back on course to target the recent highs around £0.87.
Rising trendline support from the July low and the 50-day simple moving average (SMA) have helped to support price action, and it would need a move back below £0.85 to suggest that a new bearish view prevails.
AUD/USD stabilises around May lows
The AUD/USD has bottomed out for the time being, or at least the selling has slowed after the steep declines of July and early August. For now support is holding around $0.65, the low of late May, providing some hope for the buyers.
Sellers will want to see a close below this level to resume the bearish move, but even a rebound towards $0.67 could still see fresh selling pressure to emerge.
EUR/JPY at new sixteen year high
Early gains today have seen the EUR/JPY rally to a new 16-year high. The bounce has seen dip buyers from late July rewarded with a breakout above ¥157.95 resistance. This level held back gains in June and July, but renewed EUR strength has allowed the price to push higher once more.
The medium-term view would now suggest a move to the 2007/2008 highs around ¥168.95. Dips are likely to remain buying opportunities, but a close back below ¥156.00 might suggest that some short-term weakness was in order.
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