EUR/USD and EUR/GBP rise on hawkish ECB comments while AUD/USD slips
Outlook on EUR/USD, EUR/GBP amid hawkish ECB comments and AUD/USD amid weaker gold price.
EUR/USD’s advance falters slightly below $1.1075 mid-April high
EUR/USD’s rally, on hawkish comments from European Central Bank (ECB) council members on Monday calling for a 50 basis-point (bp) rate hike at the next committee meeting, petered out slightly below the mid-April high at $1.1075. While this level caps, a slid back towards the psychological $1.10 mark may ensue.
Having said that, while the March-to-April uptrend line at $1.0969 underpins, further upside is expected to be seen which could take the cross to the January 2022 low and early March 2022 high at $1.1121 to $1.1122.
Support below the uptrend line can be spotted at the $1.0929 late March high and also at last week’s low at $1.091.
Hawkish ECB comments help EUR/GBP advance
EUR/GBP is seen heading back up towards its late March and mid-April highs around £0.8865 on hawkish ECB comments and a slightly better-than-expected German Ifo business climate which came in at 93.6 in April versus and expected 93.4 and 93.3 in March on Monday.
Immediate support sits at the 19 April high at £0.8838 with further support seen along the 55-day simple moving average (SMA) at £0.8823.
Were the £0.8865 late March high to be exceeded, the early March high at £0.8896 would be in focus, followed by the £0.8925 March peak.
AUD/USD nears October-to-April uptrend line at $0.6658
AUD/USD resumed its descent as the greenback regained lost ground and the price of gold remained under pressure last week with the cross approaching its October-to-April uptrend line at $0.6658.
If slipped through, the late March low at $0.6626 and then the early April trough at $0.662 would be targeted, a fall through which would open the way for the March low at $0.6565 to be revisited.
Resistance remains to be seen along the 55- and 200-day SMA at $0.6737 to $0.6742.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
