EUR/USD, AUD/USD recover during US President Day holiday while EUR/GBP slips
Outlook on EUR/USD, EUR/GBP and AUD/USD as US markets are shut for President Day.
EUR/USD recovers from six-week low
EUR/USD is seen bouncing off Friday’s $1.0613 six-week low as investors worried about larger US Federal Reserve (Fed) rate hikes amid rising bond yields and inflation data releases with yields on 10-year and 2-year US Treasury bonds rising to levels last seen in November ahead of Monday’s US President Day holiday.
Because of it little volatility in low volume trading is expected to be seen in EUR/USD on Monday with the 55-day simple moving average (SMA) at $1.0712 being eyed, above which sits the major $1.0736 to $1.0804 resistance zone which is expected to once again cap. It contains the December peak, mid-January low and mid-February high.
Support is seen around the 13 February $1.0656 low which lies above last week’s trough at $1.0613.
![EUR/USD chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/article_charts_website_and_platform_images/article_charts_website_images/20022023EURUSD-Daily.png/jcr:content/renditions/original-size.webp)
Last week’s rally in EUR/GBP is running out of steam
Last week’s EUR/GBP rally ran out of steam at £0.8928 as the United Kingdom (UK) and European Union (EU) try to hammer out a deal on how to resolve the Northern Ireland protocol.
The cross is seen slipping back towards its 25 January £0.8852 high which may offer short-term support. Further down the December-to-February uptrend line can be spotted at £0.8825 while resistance sits at last week’s high at £0.8928.
Below it sits the £0.8897 January peak which is likely to act as resistance on Monday, were it to be revisited at all.
![EUR/GBP chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/article_charts_website_and_platform_images/article_charts_website_images/20022023EURGBP-Daily.png/jcr:content/renditions/original-size.webp)
AUD/USD bounces off six-week low in low volume as US is shut for President’s Day
AUD/USD nearly tumbled all the way to its 200-day SMA at $0.6806 before forming a bullish Hammer reversal pattern on the daily candlestick chart on Friday as US yields rose to levels last seen in November and geo-political rhetoric between the USA and China was ratcheted up by the former.
AUD/USD has since rallied amid low volumes as the US is shut for President’s Day with the 14 February low at $0.6922 representing the first upside target, followed by the $0.6983 late January low and the $0.7029 high seen last week. This needs to be bettered for the medium-term uptrend to resume.
Slips should find support around the 6 February low at $0.6856 on Monday.
![AUD/USD chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/article_charts_website_and_platform_images/article_charts_website_images/20022023AUDUSD-Daily.png/jcr:content/renditions/original-size.webp)
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