EUR/USD and EUR/JPY rise while USD/CAD continues its swift descent
Outlook on EUR/USD, EUR/JPY and USD/CAD as the euro appreciates, the yen depreciates and USD/CAD trades at levels last seen in September 2022.
EUR/USD is seen heading back up again
EUR/USD's recovery from last week’s $1.0845 low is gunning for the breached June uptrend line at $1.0963 which represents a possible upside target, together with the $1.097 mid-June high as the greenback depreciates.
Further up beckons last week’s high at $1.1012.
Support below Monday’s Harami daily candlestick high at $1.092 comes in along the 55-day simple moving average (SMA) at $1.0887 as well as at last week’s low at $1.0845.
EUR/JPY rallies to near 15-year high
EUR/JPY continues its swift advance on the back of a hawkish European Central Bank (ECB) and dovish Bank of Japan (BoJ) which sticks to its ultra-loose monetary policy, with the cross now trading at levels last seen in September 2008.
The currency pair is fast approaching its February 2007 high at ¥159.65 but the general weakness in the yen continues to boost expectations of policy action from the BoJ to defend the currency, providing a potential point of volatility.
Support below the accelerated uptrend line at ¥156.26 can be spotted at last Friday’s ¥155.06 low, a fall through which could lead to the next lower ¥154.05 20 June low being reached. Further down sits the ¥151.61 early May high.
USD/CAD continues to slide ahead of CPI release
USD/CAD's decline has taken it to levels last seen in September 2022 ahead of today’s Canadian consumer price index (CPI) which is expected to come in at 0.4% month-on-month (MoM) and 5.4% year-on-year (YoY) in May.
The next potential support zone is made up of the June and early July 2022 highs at C$1.3084 to C$1.3079.
Minor resistance above last week’s C$1.3139 low lies at the mid-June low at C$1.3178.
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