EUR/USD, GBP/USD and USD/JPY stay side-lined
Outlook on EUR/USD, GBP/USD and USD/JPY during Fed blackout period.
EUR/USD continues to be side-lined below the $1.10 mark
Last week EUR/USD traded in a tight range below the $1.10 mark which continues to cap on Monday morning as investors look to the German Ifo Business Climate report and what it may say about that country’s economy.
While the $1.10 level caps, a slip back towards the March-to-April uptrend line at $1.0954 may ensue. Below it further minor support can be spotted at the $1.0929 late-March high and also at last week’s low at $1.091, above which it has been range trading since.
A slip through last Monday’s $1.091 low would target the $1.0832 to $1.0804 mid-February and 10 April lows which are likely to act as significant support, however. Minor resistance above the minor psychological $1.10 mark lies at the $1.1033 February peak. Still further up sits the current April peak at $1.1075, ahead of the January 2022 low and early-March 2022 high at $1.1121 to $1.1122.
GBP/USD continues to range trade above support
GBP/USD spent last week sideways trading below its ten-month $1.2546 high, made marginally above the early-April high at $1.2525, whilst being propped up by the $1.2368 to $1.2345 mid- to late-April lows and being capped by last week’s high at $1.2474 as the greenback generally appreciated throughout the week on hawkish US Federal Reserve (Fed) comments.
This week the March-to-April support line at $1.2385 may be revisited with the $1.2368 to $1.2345 zone representing key support for the currency pair’s uptrend. Were the $1.2345 level to give way on a daily chart closing basis, however, a top would be formed with the mid-February high and early-April low at $1.2275 to $1.227 as well as the 55-day simple moving average (SMA) at $1.2204 being back in sight.
Immediate resistance is seen at Monday’s intraday high at $1.2452, above which sits last week’s high at $1.2474 and the minor psychological $1.25 level. Further resistance comes in at $1.2525 to $1.2546 current April peaks. These levels would need to be exceeded for the next higher May 2022 peak at $1.2667 to be back in the frame.
USD/JPY stabilises
USD/JPY’s rise from its early-April low at ¥130.64 has taken the currency pair to last week’s high at ¥135.13 before stalling and sliding back towards the 55-day SMA at ¥133.56 as the Japanese inflation rate edged down to a six-month low.
Since then the cross recovered slightly and trades back in the middle of its one-month uptrend channel.
Below the 55-day SMA there is no support to speak of until the mid-April low at ¥132.03. Good resistance can be seen between the 15 March and last week’s highs at ¥135.11 to ¥135.13.
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