EUR/USD, EUR/GBP and AUD/USD try to retain recent gains
EUR/USD, EUR/GBP and AUD/USD defend their recent advances amid 40-year inflation in the UK and lowest monthly unemployment data on record in Australia.
EUR/USD tries to retain recent gains
EUR/USD is trying to retain its gains from last week’s $1.035 low amid its softest pace of growth in construction activity since December. Construction output in the Eurozone increased 3.3% year-on-year (YoY) in March, easing from a downwardly revised 8.9% rise in the previous month.
While yesterday’s low at $1.0461 isn’t being slipped through, yesterday’s high and the one-month resistance line at $1.0563 to $1.0604 may be revisited. The long-term downtrend will remain firmly in place, though, as long as the next higher early May high at $1.0642 isn’t overcome.
A fall through and daily chart close below yesterday’s low at $1.0461 would put the early May and January 2017 lows at $1.035 to $1.0341 back on the plate.
EUR/GBP remains above the 200-day simple moving average (SMA) post UK inflation data
EUR/GBP’s bullish reversal off Tuesday’s £0.8393 low has taken the cross back above the 200-day SMA at £0.8446, above which it has stayed as UK YoY inflation hit a 40-year high at 9% in April.
The 200-day SMA and yesterday’s low at £0.8434 are expected to act as support today, if retested. In case of failure, the 55-day SMA at £0.839 would be eyed, together with the early May low at £0.8368.
A rise above yesterday’s high at £0.8494 is needed for the late March high at £0.8512 to be back in focus. While Monday’s high at £0.8534 isn’t bettered, however, downside pressure should retain the upper hand.
AUD/USD holds recent gains amid lowest unemployment rate on record in monthly survey
AUD/USD holds its recent gains and stays above yesterday’s $0.695 low as Australia’s seasonally adjusted unemployment data came in at 3.9% in April, its lowest level on record in the monthly survey, which was slightly above a lower figure seen in August 1974, when the survey was quarterly.
A rise above the 11 May and yesterday’s highs at $0.7046 to $0.7053 is needed, for the mid-to-late February lows and the two-month downtrend line at $0.7087 to $0.7119 to be in focus. If overcome, the March low at $0.7165 may be reached as well.
A drop through yesterday’s low at $0.695 would engage the 10 May low at $0.6911 below which the currency pair’s near two-year lows can be spotted at $0.6829. In case of it giving way, the June 2020 trough at $0.6777 would be next in line.
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