EUR/USD, EUR/GBP await ECB rate decision while GBP/USD finds support
Outlook on EUR/USD, EUR/GBP and GBP/USD ahead of the ECB rate decision, US retail sales and PPI.
EUR/USD hovers above 3-month low ahead of ECB decision
EUR/USD continues to hover above its early September low at $1.0687 ahead of the European Central Bank’s (ECB) rate decision today in which another rate hike may be seen.
EUR/USD needs to rise above this week’s high at $1.0769 in order to attack the 200-day simple moving average (SMA) at $1.083 and the July low at $1.0834.
Failure at $1.0637 would lead to the May low at $1.0636 being targeted.
EUR/GBP traders await ECB rate decision
EUR/GBP remains within its June-to-September sideways trading range, now above the 55-day SMA at £0.8583 as traders await the ECB’s rate decision.
Only a rise above Wednesday’s high at £0.863 would put the $0.8658 to $0.8669 June and August highs in to the frame.
Slips through the 55-day SMA could lead to a slide towards Monday’s low at £0.8559. Further down lies the September low at £0.8524 which was formed close to key support seen between the £0.8522 to £0.8504 June and July lows.
GBP/USD holds above the 200-day SMA
GBP/USD remains above its 200-day SMA at $1.2434, which held the cross on Wednesday, despite UK house price balance hitting a 14-year low. It measures the gap between the percentage or respondents seeing rises and falls in house prices.
A slip through Wednesday’s low at $1.2435 may lead to the next lower June low at $1.2369 to be reached.
Resistance remains to be seen at the $1.2549 late August low and Monday’s high and then also at the $1.2591 June low. While next higher resistance at $1.2819 isn’t overcome, the medium-term trend remains bearish, though.
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