EUR/USD, EUR/GBP and USD/JPY slip amid risk-off sentiment
Outlook on EUR/USD, EUR/GBP and USD/JPY amid UBS takeover of beleaguered Credit Suisse.
EUR/USD loses out as greenback stabilizes
EUR/USD’s last few days’ advance has come to a halt on Monday morning at $1.069 as the US dollar is once more sought after as a safe haven currency amid the ongoing banking crisis with European bank shares continuing to sell-off sharply on Monday morning despite UBS's Swiss government-backed takeover of beleaguered Credit Suisse Sunday night.
The write-down of Credit Suisse’s 16 billion Swiss francs (14.16bn pound sterling) worth of Additional Tier 1 bonds spooked investors who remain worried about other banks failing or being bought out while certain bond holders lose out.
Minor support for the pair comes in at the mid-February low at $1.0613 while resistance above Monday’s intraday high at $1.069 can be seen along the 55-day simple moving average (SMA) at $1.0717 as well as the February-to-March resistance line at $1.073.
EUR/GBP slips amid UBS takeover of Credit Suisse
EUR/GBP continues its two-week descent amid European bank stocks which are once more being sold aggressively following the takeover of Credit Suisse by its larger rival UBS on Sunday.
The pair thus approaches its £0.8722 to £0.8719 support zone, made up of the January and last week’s low. If slipped through, the 200-day SMA at £0.8685 would be targeted next but may offer support.
Minor resistance can be spotted at the £0.8755 late February-low and at Monday’s £0.8769 intraday high as well as along the March accelerated downtrend line at £0.8791.
USD/JPY slides to six-week low
USD/JPY’s descent is ongoing amid risk-off sentiment due to the ongoing banking crisis with the cross sliding towards its ¥129.81 10 February-low, below which lies the early February trough at ¥128.09, followed by the January low at ¥127.23.
Minor resistance can be found at Friday’s ¥131.56 low, along the 55-day SMA at ¥132.45 and at Monday’s intraday high at ¥132.65.
Only if the latter were to unexpectedly be overcome on a daily chart closing basis on Monday, may a bullish reversal be witnessed.
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